Following directions by the Andhra Pradesh Chief Minister N. Kiran Kumar Reddy, the allocation of 10,760 acres of Government land alienated in favour of Brahmani Industries Ltd was cancelled for its failure to implement the project.

The land was allocated to set up a greenfield steel plant in Vemaguntapalli, Kothaguntapalli, P. Bommepalli and Thugutlapalli villages of Jammalamadugu mandal of Kadapa district.

According to a statement from the Chief Minister’s Office, the land allotment was cancelled for failure to establish the project to set up an integrated steel plant.

The State Industries and Commerce Department had entered into a memorandum of understanding with Brahmani Industries for facilitating the setting up of an integrated steel plant of 2 million tonnes capacity per annum and a full production capacity of 10 million tonnes by 2017.

The company promised to provide direct employment to 10,000 people and to create indirect employment for one lakh people.

The Government issued orders extending all eligible incentives in line with the 2005-2010 Industrial and Investment Promotion Policy.

According to the decision taken by the Y.S. Rajasekhara Reddy Cabinet on June 6, 2007, orders were issued alienating the land in favour of the integrated steel plant for setting up the plant on payment of market value.

Under the MoU, in the first phase the company was to complete the project with a production capacity of 2 million tonnes of steel by 2009.

Since the company failed to fulfil its commitment to establish the project in line with the memorandum, the Industries and Commerce Department terminated the memorandum and cancelled the incentives.

>rishikumar.vundi@thehindu.co.in

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