Investors hail steel cluster proposal at Pudimadaka in AP
The main objective of the project is to encourage ancillary units to reduce production cost of steel
image for illustrative purpose
Visakhapatnam: The in-principle approval by the Centre to the Andhra Pradesh Government's proposal to set up a huge steel cluster at Pudimadaka near here, has brought cheers among the investors mainly MSME entrepreneurs.
The promise was given to Industries Director JVN Subrahmanyam when he called on senior officials of the Ministry of Steel. The main objective of the project is to encourage ancillary units to reduce production cost of steel.
"It's a welcome move and expected to give a fillip to ancillary units in a big way so as to reduce the cost of steel. We hope the authorities will focus on production of value-addition so as to save foreign exchange by encouraging import substitution under Make in India initiative," Neeraj Sarda, Managing Director of Sarda Metals & Alloys Limited told Bizz Buzz on Friday.
Informed sources said 1,000 acres will be allotted by the State Government for development of the cluster. The Centre has promised product-based subsidies under the Ministry of Steel's framework policy for development of steel clusters.
NTPC had planned to set up an ultra mega 4,000 MW coal-fired power plant at Pudimadaka six to seven years ago for which it had paid Rs 700 crore for acquiring 1,300 acres. It had also sought an additional area of 700 acres. However, post-Hudhud (October, 2014) due to change in Centre's priority to encourage solar power plants, the project which had envisaged an investment of Rs.20,000 crore did not see the light of the day.
Recently a public hearing was held to establish a modern fishing harbour at Pudimadaka, the largest fishermen hamlet in the State, at a cost of Rs.353 crore. The village is located about 23 km from NTPC Simhadri Super Thermal Station at Parawada. NTPC has 4x250 MW thermal power plant at Parawada. Hinduja Group also has a 1040 MW power plant in Visakhapatnam.
Investors feel that the steel cluster would help Visakhapatnam Steel Plant belonging to State-owned Rashtriya Ispat Nigam Limited, which has a production capacity of 7.3 million tonne per annum, in diversifying its product range and reducing production cost.
"We want the cluster to propel the growth of MSMEs units with incentives and focus on catering to the needs of value added products. We also want that the products should be sourced from the units located at the cluster by Hindustan Shipyard Limited, Indian Navy and Heave Plate and Vessels Plant belonging to BHEL," A.K. Balaji, president of Visakha Small-Scale Industrialists Welfare Association (VASSIWA) said.
