Bramhani signs MoU with AP govt for Rs 20k cr integrated steel plant

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Hyderabad, May 21 : Bramhani Industries Ltd (BIL), a company promoted by Obulapuram Mining Company in Bellary, has proposed to invest Rs 4,500 crore into an integrated steel plant with 2 million tonne capacity in backward Kadapa district. The company has signed a MoU with the Andhra Pradesh government in this regard here on Monday.

The State Investment Promotion Board (SIPB), which met under the chairmanship of Chief Minister YS Rajasekhara Reddy, cleared the project along with other six mega projects.

Disclosing this to media, the Chief Minister said that the steel project will be given necessary incentives and subsidies under the State's industrial policy. Besides, the government will ensure 2 tmc of water from nearby Gandikota reservoir. "As of now, we have tied up the required water source for two phases covering 4 million tonnes," Reddy said. The company required 3 tmc more for its proposed expansion in the third and fourth phases, he added.

The Chief Minister has also assured the company of providing 8,000 acres of land for the project in the Jammalamadugu mandal in Kadapa district. He said that the land identified by the district administration will be transferred to the company very soon.

BIL promoter G Janardhan Reddy said that the company is preparing for setting up an integrated steel plant with 10 million tonne capacity in four phases. It requires an investment of Rs 20,000 crore by the year 2017. "The first phase will be operational in the next 16 to 18 months and by 2009 it will be 4 million tonne capacity plant," Janardhan Reddy said. The company proposed to lay foundation stone for the project on June 10, he added.