The government of the southern Indian state of Andhra Pradesh has approved a proposal of Indian steel producer JSW Steel Limited to construct a greenfield steel mill in the Kadapa district in the region, a government official said on Tuesday, December 13.
The project in the first phase would involve an investment of an estimated $402 million to set up a one million mt per year steel mill and will subsequently be ramped up to 3 million mt per year in the second phase at an aggregate investment of around $1.07 billion.
Initially the state government had sought a steel mill project in the region by government-run Steel Authority of India Limited (SAIL). But with the latter declining with a plea of inadequate raw material linkages, the Andhra Pradesh government had decided to go it alone in implementing the project.
However, given the financial constraints of the state government, it has joined together with JSW Steel Limited to put up the mill, the official said.
