The government of Andhra Pradesh is likely to take up the responsibility of setting up the Kadapa steel plant or look for Plan B, cited local media reports.
The move comes in the wake of mounting financial stress for the UK-based Liberty Steel, which was earlier in talks with the state government regarding Kadapa steel plant.
According to reports, the company is seeking support from the UK government after its financial backer Greensill Capital went into insolvency filed earlier in March. Greensill Capital was the biggest lender to GFG Alliance, of which Liberty Steel is a part.
Andhra Pradesh’s Minister for Industries, Mekapati Goutham Reddy, clarified the government has not yet signed any MoU with Liberty Steel for the establishment of the 3 MTPA integrated steel plant in Kadapa.
Earlier in March, the central government had given all the necessary environmental clearances needed for setting up of this steel plant. The government will have to float bids again to look for another partner, if Liberty Steel fails to raise the funds needed for the plant.
In February, the state government said that the steel plant, which is under consideration for past few years, is proposed to be taken up through a joint venture partnership, in which many prominent companies have shown interest.