Brahmani Steels Land Deal Cancelled

Chief Minister N Kiran Kumar Reddy on Thursday approved the proposal to cancel the allocation of government land of 10,760.66 acres to M/s. Brahmani Industries Ltd., in Vemaguntapalli, Kothaguntapalli, P Bommepalli and Thugutlapalli villages of Jammalamadugu Mandal of Kadapa, for the company's failure to establish a project to set up an integrated steel plant

It may be recalled here that the Industries & Commerce department had entered into an MoU with Brahmani Industries Ltd., to set up an integrated steel plant of a capacity of 2 million tonnes per annum, and a total production capacity of 10 million tonnes by 2017.

The company had promised the government that it would provide direct employment to 10,000 people and indirect employment to one lakh people.

The government then issued orders extending all incentives that the company was eligible for, as per the 2005-2010 Industrial & Investment Promotion Policy.

As per the decision taken by the then state cabinet on June 6, 2007, orders were issued alienating the land in favour of Green Field Integrated Steel Plant for setting up the plant on payment of market value.

According to the MoU, in the first phase of the project, the company was supposed complete the project with a production capacity of 2 million tonnes of steel by 2009.

Since the company failed to fulfill its commitment, the Industries & Commerce department terminated the MoU, and cancelled the incentives. (INN)