SIPB approves JSW’s Rs 8,800-crore proposal to set up steel plant in Kadapa

VIJAYAWADA:  The State Investment Promotion Board (SIPB) cleared proposals for investments to the tune of Rs 23,985 crore in the State. It approved JSW Steel Limited’s proposal to set up a steel plant in 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.

Chief Minister YS Jagan Mohan Reddy chaired the SIPB meeting at his camp office in Tadepalli on Monday. Officials informed Jagan that JSW Steel Limited will invest Rs 8,800 crore in two phases to establish the steel plant at Sunnapurallapalli village in YSR district.

In the first phase, the firm will invest Rs 3,300 crore to produce one million tonnes of steel in the first year. The production will be increased to two million tonnes after the second phase of investment, thereby taking the total production to three million tonnes a year.

Directing the officials to ensure that the steel plant works commence as soon as possible, the Chief Minister felt the project would help in the process of changing the face of backward Rayalaseema.Jagan pointed out that the steel plant will not only create direct and indirect jobs for thousands of people, but it will also help in the establishment of several allied industries, further providing more employment opportunities.

The Board also approved Adani Green Energy’s proposal for 1,600 MW pumped hydro storage power project to be taken up with an investment of Rs 6,330 crore. The project will provide direct employment to over 4,000 people. 

Adani Green Energy Limited will set up a 1,000 MW plant at Pedakota in Alluri Sitarama Raju district and a 600 MW plant at Raiwada in Anakapalle and Vizianagaram districts. Works are set to commence in December 2024, while the project is likely to be commissioned within four years. Around 4,196 million units of electricity per year will be produced.

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