Steel minister assures govt commitment for setting up Kadapa steel plant

The Centre is committed to set up a steel plant at Kadapa in Andhra Pradesh, but the required information about the proposed project is yet to come from the state government, Steel Minister Chaudhary Birender Singh said Friday.

The statement comes a day after Andhra Pradesh Chief Minister N Chandrababu Naidu laid the foundation stone for the establishment of the Kadapa steel plant, which became a contentious issue as the state has accused the Centre of not honouring the commitment made in the Andhra Pradesh Reorganisation Act, 2014.

"We are committed to set up a steel plant there (in Kadapa). But you know...due diligence is required. If they don't go by that, then it's not possible for us to give the final report...So, ultimately there is no response from the state government...We have come to know that even the clearance from the forest (department) has not been obtained - which is to be given by the state government only," Singh said on the sidelines of a SAIL event. The latest information about the type of mines, and the quantity, as well as quality of iron ore, was to be supplied by Andhra government, he added.

Singh said after SAIL's statement that sets up a steel plant there, prima facie, is not financially viable, the steel ministry itself decided to have a task force to prepare a feasibility report, which involved members of both Telangana and Andhra Pradesh. Besides, SAIL and state-owned consultancy firm MECON were also part of it. There have been about seven meetings, the minister said, adding that the relevant information has to be supplied by the state government.