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SAIL offers to acquire Brahmani Steel

SAIL has offered to acquire Karnataka minister G Janardhan Reddy-promoted Brahmani Steel.

Written by Agencies | New Delhi | Published: March 22, 2012 6:14 pm

State-owned SAIL has expressed its interest to acquire former Karnataka minister G Janardhan Reddy-promoted Brahmani Steel in Andhra Pradesh,Parliament was informed.

Brahmani Steel has 14,700 acres of land and iron ore mines to build a 2.5 million tonnes steel plant at Kadapa in Andhra Pradesh. However,the project,alloted to the company during the regime of late Y S Rajasekhara Reddy,is yet to take off.

“SAIL has registered its interest with Government of Andhra Pradesh in September,2011 for acquisition of Brahmani Steel and associated mines or any other land bank with iron ore mines in Andhra Pradesh,” Steel Minister Beni Prasad Verma said in a written reply to the Rajya Sabha.

He added that “future course of action by SAIL will be decided on receipt of response from Government of Andhra Pradesh.”

The plant,which was proposed to be the first steel plant of such scale in the state,was estimated to get an investment of Rs 4,400 crore.

However,it is yet to take off due to several issues,including company promoter and former Karnataka Minister G Janardhan Reddy being in jail.

In April last year,the state government had also issued a show cause notice to the company for the delays. Later,it tried to bring in public sector steel makers for execution of the project.

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