The Andhra Pradesh Government has issued orders to induct Essar Steel Limited as the strategic partner for developing a high-grade steel plant under a joint venture in the Kadapa district of Andhra Pradesh.
State special Chief Secretary R Karikal Valavan, in an order issued today, stated that the Government, after careful examination of the matter and as recommended by SBICAP, has declared Essar Steel Limited as the JV partner for YSR Steel Corporation Limited.
The AP Reorganization Act, 2014 had provided for the feasibility of establishing an integrated steel plant in YSR Kadapa District of the successor State of Andhra Pradesh, and this is a culmination of nearly seven years of effort and pave the way for the setting up of a Steel Plant at Sunnapurallapalle and Peddanandluru villages of Jammalamadugu Mandal of YSR Kadapa district.
The State Government had earlier issued orders alienating 3148.68 acres of land to YSR Steel Corporation Ltd to execute the project in a Joint Venture (JV) mode. Further, to support YSRSCL in complex technical, legal and commercial aspects involved in such JV Agreements, YSR Steel Corporation Ltd, has appointed SBI Capital Markets Ltd. (SBICAP) as the Transaction Adviser, MN Dastur & Co. as a Technical Consultant through the tender process and Shardul Amarachand Mangaldas & Co. as a Legal Consultant through the tender process.
Initially, the Expression of Interest was called for, for which a total of seven companies, including two companies from abroad, had shown interest. Thereafter, the Request for Proposal (RFP) was issued and in response to that, four companies participated and two companies have been qualified for evaluation of the proposals filed as per the terms and conditions of RFP. While Initially another company was chosen, it was decided to consider Essar Steel Limited based on the recommendation of experts.