The state Cabinet cancelled its earlier decision, made on February 23, choosing Liberty Steel India Limited as the JV partner for development and growth of the YSR Steel Plant.
With Liberty caught in monetary woes, the SBICAP requested the YSR Steel Corporation Limited, the Special Purpose Vehicle of the state authorities, that its earlier suggestion be reviewed and proceed with the following qualifying applicant Essar.
The Cabinet thought of the proposal and accepted SBICAP’s suggestion to choose Essar as the JV partner, in accordance to Information Minister Perni Venkataramaiah (Nani).
The mission capex of the mission is Rs 11,606 crore.
The AP authorities established the YSR Steel Corporation Limited for growth and operation of a brand new steel plant in Kadapa district and invited proposals in November final from famend corporations for inducting as a three way partnership partner.
The proposed steel plant could have a capability of up to three million tonnes each year for producing excessive grade steel merchandise.
The state authorities already signed a memorandum of understanding with NMDC for supplying the required 4.5 million tonnes of iron ore yearly for the proposed steel plant.
According to the federal government declare, the plant would offer direct and oblique employment to about 25,000 folks.
The state authorities pooled 3,148.68 acres of land unfold over two villages for the built-in steel plant, which might now be alienated to the YSR Steel Corporation for Rs 1.65 lakh an acre.