Andhra Pradesh government approves Essar as partner to construct greenfield steel mill project

Andhra Pradesh government approves Essar as partner to construct greenfield steel mill project

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The government of southern Indian state of Andhra Pradesh has approved Essar as joint venture partner to put up a greenfield steel mill in the state after its partnership with Liberty Steel fell through, a government official said on Thursday.

He said that the Andhra Pradesh cabinet of ministers have approved the state’s partnership with Essar based on recommendations of consultants SBICAPS.

Earlier this year, the state government had selected Liberty Steel to partner YSR Steel Corporation Limited, a company floated by the government to construct a greenfield steel mill project. But the partnership was aborted following collapse of Greensill Capital, the main financial backer of Liberty steel forcing the state government to begin a fresh start for a search of a new partner.

The government has proposed to construct a 3 million steel mill to produce high grade special steels through the joint venture route.

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