Sarda earmarks Rs. 1,580cr for AP plant

The Nagpur-based Sarda Energy & Minerals has decided to invest Rs. 1,580 crore in an integrated iron alloy and steel plant near Vizianagaram in Andhra Pradesh. The project which would be executed in three phases, will include the setting up a captive power plant, said Managing Director of the AP Industrial Infrastructure Corporation (APIIC).

He said adding that the capacity of the plant will be augmented to 8.5 lakh tons per annum in three years and the plant will become the second largest steel plant in the state after Brahmani Steels project construction work of which is currently in full swing. With a current capacity of 3.5 million tons Vizag Steels plant is the biggest in the state but it has also lined up expansion plans to double its production capacity as demand is expected to pick up when the economy of the state revives, he claimed.

The state government has allotted about 280 acres of land at Kantakapally village near Kothavalasa in the Vizianagaram district and work on the first phase of the project will commence in September this year. To meet the funding requirement of the proposed plant, the company is raising funds through internal accruals and loans from banks and other financial institutions and expecting to secure financial closure of the project in about three months time, said senior vice-president, Sarda group, V B Jain.