In yet another move to reverse the policy decisions taken by the previous TDP government under Chandrababu Naidu, the Jagan Mohan Reddy led YSRCP government has finally cancelled and derecognized the Rayalaseema Steel Corporation Limited (RSCL). A notification to this effect was released on Friday.
In its notification, the state government stated that since the AP High Grade Steel Corporation was set up, the RSCL will cease to exist.
Rayalaseema Steel Corporation Limited, was formed for setting up of the steel plant as a joint venture with AP Mineral Development Corporation for taking up mining and supply of iron ore to the steel plant. Chandrababau Naidu had laid the foundation stone at Maremma Kambaladinne village in Mylavaram mandal, in Kadapa, for the construction of the steel plant.
The previous government had also appointed former Vizag Steel Plant CMD P Madhusudhan as the CMD of RSCL. RSCL had also called global tenders to prepare a techno-economic feasibility report for the integrated steel plant. The steel plant was to come up at an investment of Rs 15,000 crore to Rs 18,000 crore. An integrated steel plant at Kadapa was assured by the centre in the 13th schedule of the AP Reorganisation Act.
RSCL was formed with a paid up capital of Rs 2 crore, divided into 2 lakh shares of Rs 10 each and the board was constituted, establishing a registered office at the corporate office of APMDC at Vijayawada.
In a move to erase the imprints of Chandrababu Naidu, Jagan Mohan Reddy had set up AP High Grade Steels, a special purpose vehicle (SPV) formed to set up a steel plant in YSR Kadapa district of Andhra Pradesh.