Mr YS Rajasekhara Reddy chief minister of Andhra Pradesh has hinted that one more steel factory might come up in Kadapa district.

Mr Reddy said that an entrepreneur had approached the state government to set up a 2000 million tonne capacity steel plant in Kadapa.

He added that "BMM Ispat is keen to set up the second steel plant after Mr Janardhan Reddy came forward to start the Brahmani Steels Limited near Jammalamadugu in the district."

He further added that waste and barren lands that did not have any market value was sought by BMM to set up new ventures. The area the industrialists are scouting for lies on the Guntakal Chennai railway line, from where iron ore can be transported to Chennai or Krishnapatnam port.