Andhra Pradesh Chief Minister Jagan Mohan Reddy laid the foundation stone for setting up a high-grade steel plant at Sunnapurallapalli village in Kadapa district.
The project will entail an investment of Rs 15,000 crore and have a capacity of three million tpa.
A total of 3,295 acre of land parcel has to be acquired in Jammalamadugu area of Kadapa district for the plant to be set up with private investment.
The steel plant will be completed in three years and provide job opportunities for around 25,000 people.
The state government has inked a memorandum of understanding (MoU) with NMDC for supply of about five million tonne of iron ore for the steel plant every year.
An initial provision of an amount of Rs 250 crore has been made in Budget 2019-20 for establishment of the plant.