The foundation for the steel plant (Rayalaseema Steel Corporation Limited) being established by the government as a 100% State-owned company in the Kadapa district will be tentatively laid in the last week of this month.
This comes in the wake of the appointment of a board of directors headed by P. Madhusudan (former CMD of the Visakhapatnam Steel Plant) and the setting in motion a few days ago of the process of drafting the Memorandum and Articles of Association.
According to official sources, the government has taken steps for the construction of the 3 Million Ton Per Annum (MTPA) plant and providing other facilities in about 4,000 acres at M. Kambaladinne village in the Mylavaram mandal.
It is learnt that the steel-making would be done through a blast furnace among various types of the metallurgical processes.
Technology partner
The D-2 level exploration of the iron ore largely in the Anantapur and the Kadapa districts and to some extent in Prakasam has been expedited to complete by March 2019. The Geological Survey of India estimated that more than 250 MT of good quality iron ore is available for the RSCL.
As on date, the government is toying with the idea of roping in a foreign entity as a technology partner.
It decided to set up the RSCL as its own project after the Central government had reneged on its commitment to establish an integrated steel plant (in the district) as per the Reorganisation Act.
The State government has since moved swiftly by constituting the RSCL with an initial authorised paid up capital of ₹2 crore divided into 20 lakh shares of ₹10 each.
On the basic infrastructure front, water is planned to be sourced from the Telugu Ganga project.
For the time being, the registered office is being set up in the premises of the corporate office of the A.P. Mineral Development Corporation in Vijayawada city.