Kadapa Steel power station

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Kadapa Steel power station is proposed power capacity related to a steel plant permitted in Kadapa, the state of Andhra Pradesh, India.

Location

The map below shows the approximate location of the steel plant in Kadapa, the state of Andhra Pradesh, India.

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Background

According to Platts data, two 30-megawatt (MW) coal-fired power station units related to Kadapa Steel were proposed and subsequently cancelled.

However, no additional information is known about a related coal-fired power station proposal. The proposal is excluded from Global Energy Monitor's Global Coal Plant Tracker.

Steel Plant plans

The Kadapa steel power plant was originally proposed in 2014. There were originally two proposals: one was driven by Swiss company IMR Metallurgical Resources-AG, who proposed to set up a 10-million-tonne capacity steel plant in the Kadapa district of Andhra Pradesh, and one very similar proposal coming from the state government. A feasibility report that was submitted by the group SAIL in December 2014 deduced that, given the current configuration of the plants, the projects were not financially viable. In March 2016, a new task force meeting was held to re-examine the feasibility report. After the initial feasibility report was released, the Telugu Desam Party (TDP) MP CM Ramesh and MLC BTech Ravi went on a hunger strike to protest the suggestions, arguing that the steel plant would bring strong economic benefits to their region.

The steel plant continued to be discussed. In December 2019, the state government finalized the project and announced it would go through, but at a capacity of 3 million tonnes of steel per year. In March 2020, a potential partnership with Hyundai was announced, where the auto manufacturer said it was willing to invest about ₹15,000 crore (~2 billion USD) into the Kadapa steel plant to support their automobile manufacturing plant in Chennai, India. Other companies such as Tata Steels and Essar Steels also came forward to work on the project; eventually, in 2021, Essar was given the contract to build and operate the steel plant.

According to the state government, the plant will directly and indirectly employ around 25,000 people. To build the plant, the state took over more than 3,000 acres of land, spread across two villages.

Environmental Clearance

In December 2020, the Andhra Pradesh government sent the Ministry of Environment, Forest and Climate Change (MoEFCC) a proposal for the steel plant, which was approved in January 2021. The MoEFCC outlined 24 conditions for the plant to fulfill in order to meet environmental standards; these included controlling air, water, and noise pollution, developing a green belt around the facility, and more. The state government has earmarked at least ₹1,815 crore (~$244 million USD) for these initiatives.

According to early permitting documents related to the steel plant, the following in house power generation capacity was proposed (88.6 MW):

• Steam turbine generator (STG) at power blowing station (3 x 18 MW) – 2 Working + 1 Standby
• Back pressure turbine generator (BPTG) at CDCP (1 x 10.6 MW)
• Top recovery turbine generator (TRT) at blast furnace (1 x 27 MW)
• Waste heat recovery boiler generator (WHRB) at sinter plant (1 x 15 MW)

Pollution Control Board consent

In October 2021, the Andhra Pradesh Pollution Control Board approved and issued consent for setting up the Kadapa Steel Plant (M/s AP High Grade Steels Limited) at an estimated cost of Rs 16,986 crore with 84.7 MW capacity captive power generation.

Based on available information, no significant coal-fired power station capacity seemed planned at the site.

Project Details

• Sponsor: Bramhani Industries
• Parent company: Bramhani Industries
• Location: Kadapa, the state of Andhra Pradesh, India
• Coordinates: 14.6973, 78.4594 (approx.)