YSR Steel Plant in AP May Face Uncertainties
Business Line reported that investment bankers and loan arrangers told that the mounting financial troubles for Mr Sanjeev Gupta is likely to be a dampener for one of the largest steel projects of the Andhra Pradesh government as the cash generation of nearly USD 2 billion by JV now seems uncertain.
Andhra Pradesh chose Liberty Steel India Limited in February 2021 as the joint venture partner for construction and development of YSR Steel Corporation Limited’s steel plant in Kadapa district. The AP government established the YSR Steel Corporation Limited for development and operation of a new steel plant in Kadapa district and invited proposals in November 2020 from renowned companies for inducting as a joint venture partner. The proposed Kadapa Steel plant at a cost of INR 10,082 crore and INR 6,000 crore in phase 1 & 2 respectively with a capacity of three million tonne in each phase. YSR Steel Corporation set March 31, 2024 as the commercial operation date for phase 1 of the project, in which it has been targeted to produce 1 million tonne of crude steel.