JSW setting up Rs. 8,800-cr Greenfield steel plant at Kadapa

The State Investment Promotion Board approved investments to the tune of Rs23,985 crore including the Kadapa Steel Plant. Adani Green Energy Limited will invest Rs6,330 crore. The SIPB has also cleared Rs 8,855 crore hydro storage project by Shirdi Sai Electricals Limited

Vijayawada: After several twists and turns, JSW Steel Limited has come forward to set up a greenfield three million tonnes integrated steel plant at Kadapa-the native district of Chief Minister YS Jagan Mohan Reddy.

JSW Group, a USD 22 billion entity engaged in steel, energy, manufacturing, cement and painting, is producing 27 million tonnes of steel annually. JSW has factories in Karnataka, Maharashtra, Tamil Nadu, Chhattisgarh and Odisha.

The State Investment Promotion Board (SIPB), headed by Chief Minister YS Jagan Mohan Reddy, on Monday gave the green signal for investment on the Kadapa Steel Plant. The SIPB approved investments to the tune of Rs 23,985 crore including Rs 8,800 crore on the new steel plant in the State.

The SIPB has given its nod for JSW Steel Limited's proposal to set up a steel plant at Kadapa at a cost of Rs 8,800 crore and for pumped hydro storage projects to be set up by Adani Green Energy Limited and Shirdi Sai Electricals.

The officials informed the Chief Minister that JSW Steel Limited will invest Rs 8,800 crore in two phases for setting up the steel plant in Sunnapurallapalli village in Kadapa district. In the first phase Rs 3,300 crore will be invested by the company to produce one million tonnes in the first year. It will upgrade to two million tonnes in the second so as to reach the targeted capacity of three million tonnes.

The Chief Minister asked the officials to ensure that the steel plant works commence as soon as possible. He said that it is a great effort in the process of changing the face of backward Rayalaseema. Besides, thousands of people will get employment directly and indirectly. Many allied industries will be set up providing more employment opportunities.

The SIPB approved a 1600 MW pumped hydro storage power project. Adani Green Energy Limited will invest Rs 6,330 crore providing direct employment to over 4,000 people.

The company will set up a 1,000 MW plant in Pedakota of Alluri Sitarama Raju district and a 600 MW plant at Raiwada in Anakapalli and Vizianagaram districts. The project is proposed to commence work in December 2024 and is set to be commissioned within four years. Around 4,196 million units of electricity per year will be produced.

The SIPB has also cleared Rs 8,855 crore hydro storage project. Shirdi Sai Electricals Limited will set up two projects at Yerravaram and Somasila to produce 2,100 MW. The company will set up a 1,200 MW project at Yerravaram and a second project of 900 MW at Somasila. The target is to commence the works in July 2023 and complete it in phases by December 2028. After its commencement, the company will directly generate employment for 2,100 people.

"With investments in sea ports, steel and renewable energy in AP, the State is poised to be in the forefront of industrialisation. Would come up with more major investment announcements in the forthcoming "Global Investment Summit" in Visakhapatnam in March, 2023," Sridhar Lanka, Advisor to Government of Andhra Pradesh, told Bizz Buzz.

He said "CM YS Jagan Mohan Reddy with his focus on social welfare is also interested in holistic development of the State with all sectors and in all regions growing at a constant rate, rather than focusing only on one particular region. Industrialisation and creation of jobs will remain his focus henceforth, apart from welfare of the people."