Kadapa (AP): Andhra Pradesh Chief Minister Y S Jagan Mohan Reddy Monday announced that a new steel plant would be set up in Kadapa district, foundation for which would be laid on December 26.

The proposed plant would be completed within three years and provide employment to about 20,000 people, he said on his maiden visit to his home district after assuming power.

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He, however, did not divulge more details about the project.

The steel plant issue was incorporated in the AP Reorganisation Act, 2014 with the Centre promising to explore the feasibility of establishing it.

It had since been a contentious issue between the state and the Central governments with the previous TDP government accusing the latter of not honouring the commitment made in the AP Reorganisation Act, 2014.

Alleging that the Centre did not honour its promise, former Chief Minister Chandrababu Naidu had laid foundation stone for a steel plant on December 27 last year.

Apparently referring to this, Jagan said, "we had seen the dramas (over the steel plant) enacted by some people only to gain political mileage."

The Centre had been maintaining that modalities of investment for thesteelplant would be finalised "keeping the best interests of the people of the state in mind" once MECON prepared the feasibility report.

The Centre said the state has not yet submitted required information on mines and iron ore for thesteelplant because of which the feasibility report could not be prepared.

Official sources said it would take at least two years to secure environmental clearances for the project while required land acquisition could be completed in the meantime.

Another two years would be required to order and obtain machinery for the plant, they said.

When it was in the opposition last year, the YSR Congress Party had accused the Chandrababu Naidu government of committing a scam in acquiring land for the steel plant.

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