The Hindu : Andhra Pradesh News : Nod for Visakhapatnam Steel Plant expansion soon

Online edition of India's National Newspaper
Tuesday, May 10, 2005

Andhra Pradesh

Andhra Pradesh

Nod for Visakhapatnam Steel Plant expansion soon

W. Chandrakanth

Major investments in steel, gas sectors on the way: YSR

HYDERABAD: The Rs. 8, 500-crore expansion plan of the Visakhapatnam Steel Plant is all set to get Central clearance at the next Cabinet meeting. The stage is also set for a Rs. 15, 000-crore steel plant of the Essar group to come up at Kakinada.

The Chief Minister, Y.S. Rajasekhara Reddy, said here on Monday that the industrial investment profile of the State, which recorded a dismal Rs. 4, 500 crores for 2001-05, was all set to take off with substantial investments expected in the steel, bauxite and natural gas sectors.

The Essar group had "personally promised" him that it would establish a mega steel unit at Kakinada. Vijayanagar-Jindal was another group, which evinced interest in setting up a steel factory, Dr. Reddy disclosed to The Hindu .

The Chief Minister said the Andhra Pradesh Mineral Development Corporation would undertake bauxite mining.

Talks with the Volkswagen were also in the final stage and its board would announce its decision after meeting officials on May 22.

Challenge from neighbours

He said his Government had recently written to the Centre seeking a ban on tax holidays being announced by newly-formed States such as Jharkhand and Chhattisgarh to attract new industries, as it deprived others of a level-playing field. The State Government was, however, countering this challenge by offering concessions in power tariff and returning 25 per cent of the Value Added Tax.

Dr. Reddy said the office of the Special Representative of Andhra Pradesh in New Delhi was working overtime in pursuing Central clearances for industrial and irrigation projects.

Foreseeing no trouble for his irrigation plans, he expressed confidence that Central clearance for projects on the Godavari would be secured in three to six months.

The administration was pursuing the matter "relentlessly" and for Krishna river projects, the Government would anyhow go ahead with works.

External aid was not a problem while at the same time, the Government was making sufficient budgetary allocations for projects, he said.

Printer friendly page
Send this article to Friends by E-Mail

Andhra Pradesh