AP govt signs MoU for steel plants

Hyderabad, May 21 (UNI) The Andhra Pradesh government has signed a Memorandum of Understanding (MoU) with Bramhani Industries to set up an integrated steel plant at Vemaguntapalli village in Kadapa district.

The MoU was signed by Industries Secretary Shyam Babu and Chairman and Managing Director of Obulapuram Minerals Ltd and Promotor of the steel plant B Janardhana Reddy, in the presence of the Andhra Pradesh Chief Minister Y S Rajasekhara Reddy and the state Major Industries Minister J Geetha Reddy.

The Chief Minister said the government had allocated 8,000 acres of land to the steel plant which would intially provide direct employment to 2,500 persons and indirect employment to 10,000.

He said the foundation stone would be laid on June 10 and the construction work would be completed within 16 to 18 months.

The steel plant would produce two million tonnes in the first phase with a cost of Rs 4,500 crore and the government would supply two TMC water to the plant from Gandikota reservoir, he added.

He said the promotors would invest Rs 20,000 crore to produce 10 million tonnes by the end of fourth phase.

He said the state government had been providing several incentives for the investors with a view to promote the industrial growth which would create employment opportunities.

State Major Industries Minister Geetha Reddy said the state Industrial Policy was the best in the country.

She said the state Investment Promotion Board today cleared as many as seven mega industries in the state.

Obulapuram Minerals Ltd Chairman and Managing Director Janardhana Reddy said the company would produce 10 million tonnes by 2017 and it would create employment to two lakh people.

UNI