SBQ Steels Limited, promoted by the Chennai-based diversified RKKR group, has sought the state government’s assistance for capacity expansion of its 500,000 tonnes per annum (tpa) steel plant in Nellore district and also for setting up a 300 Mw merchant-cum-captive power plant.
The company proposes to expand the plant capacity to 2 million tpa at cost of about Rs 4,500 crore besides setting up a 300 Mw power plant involving an investment of Rs 1,500 crore.
A three-member delegation led by SBQ chairman Rajiv Rai called on chief minister K Rosaiah on Wednesday and sought assistance for the Rs 6,000-crore expansion programme. Rai sought additional land, which has already been surveyed and identified, for laying a private railway siding and a corridor from the Krishnapatnam port to lay a conveyor.
Stating that the relief and rehabilitation cost involving the acquisition of the identified land would be met by the company, Rai urged the government to notify the land and appoint a commissioner to proceed in this regard. He also wanted the government to allocate low grade iron ore available in Naidupeta.
Rosaiah assured all necessary support and directed the officials to examine the company's proposal. He also directed the irrigation secretary to look into the aspect of additional water requirement for the steel plant.
Rai informed that he wanted to set up an Industrial Training Institute in the area under the existing schemes of central and state governments. All the diploma holders coming out of the institute would be be employed by the company.