YSR lays foundation stone for 20 mt steel plant in AP

By Staff
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Google Oneindia News

Kadapa, Andhra Pradesh, June 10 (UNI) Chief Minister Y S Rajasekhara Reddy today laid the foundation stone and performed 'bhoomi pooja' (ground-breaking) for the over 20 million tonne steel plant being set up by Brahmini Industries Limited (BIL) at Ambavaram Village of this chronic drought-prone district at a cost of Rs 20,000 crore.

In his address, Dr Reddy praised BIL's decision to set up the factory at a place where the land was unfit for cultivation and unhabitated.

While the factory would have the same capacity as Visakhapatnam Steel Plant (VSP), it would occupy only 10,000 acre against the 29,000 acre occupied by the VSP.

While the VSP displaced 14,000 people, the Brahmini venture would not displace even a single person. The new steel plant would start production in just 18 months as against 19 years taken by the VSP.

Referring to allegations by the Opposition TDP and a section of the media on the government causing Rs 100 crore loss by selling 10,000 acre to the steel plant at the rate of Rs 18,000 per acre, Dr Reddy said the rate charged by the government was more than what was existing in the neighbouring villages.

Dr Reddy said the government was willing to allot another 4,000 acres to the steel plant to develop a private airport at Jammalamadugu.

While the Airports Authorty of India (AAI) would be developing the Kadapa airport, the Brahmini Industries Limited would be setting up a private airport at Jammalamadugu.

The plant, which would produce two million tonne steel intially, would provide direct employment to 10,000 persons and indirect employment to one lakh people.

In the second phase, which would be completed by 2011, another 4.3 million tonnes would be produced.

In the third phase, the plant would produce 7.7 million tonne and ten million tonne by the fourth phase.

Dr Reddy said BIL was holding negotiations with Chinese companies Sino Steels, MCC and Chowgang for tie-ups.

Strongly criticising the Opposition for trying to stall the development projects, he jokingly advised the management of the steel plant to put a scare crow at the plant site to drive away evil forces, as farmers did at their fields.

Referring to the criticism that 20 tmcft of Krishna water was being diverted to the steel plant, Dr Reddy said the plant required only two tmcft of water for production upto four million tonne. He offered to set up a de-salination plant to use the sea water for the plant.

Making a scathing attack on the Opposition TDP, Dr Reddy said its chief N Chandrababu Naidu was playing opportunistic politics.

While Mr Naiud criticised the BJP in 1996 for the demolition of the Babri Masjid, he joined hands with the same party to keep his chair later.

Speaking on the occasion, Union Minister of State for Mines T Subbarami Reddy said while in other southern states like Kerala, Karnataka and Tamil Nadu, all the political parties stood together on developmental projects, in Andhra Pradesh, opposition parties were trying to stall even developmental efforts.

UNI

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