JSW actively pursuing investment opportunities in AP
Sources said the government was considering privatising operations in Ramayapatnam and taking up expansion under the PPP mode if need be
Hyderabad: The steel giant JSW Group is said to be actively exploring investment opportunities in Andhra Pradesh including the takeover of the proposed Kakinada Special Economic Zone (SEZ) and greenfield port project that belongs to the Aurbindo group.
JSW, owned by Sajjan Jindal, recently commenced construction of integrated steel plant in Chief Minister Y.S. Jagan Mohan Reddy’s native YSR Kadapa district. The plant will be built in two phases with an investment outlay of '8,800 crore.
Sources told Deccan Chronicle that talks between JSW and Aurobindo were in an advanced stage and the latter had offered to sell the SEZ except for 400 acres where its own pharma unit is coming up. Aurobindo had purchased the KSEZ project from the GMR Group.
“The company could not attract clients for its SEZ and no project could be concluded except its own unit which will be the anchor client for the '1,000-crore central sponsored pharma hub,” sources said adding that the Essar Group had earlier explored the possibility of a takeover.
Jindal met Chief Minister Jagan Mohan Reddy a few days ago and discussed investments in Ramayapatnam port, which is under construction. The port was being built by the state government under the engineering procurement construction mode (EPC) with financial assistance from the bankers instead of going via a public private partnership (PPP).
Sources said the government was considering privatising operations in Ramayapatnam and taking up expansion under the PPP mode if need be. The then N. Chandrababu Naidu government privatised the Kakinada port after constructing it with an Asian Development Bank (ADB) loan.
KSEZ managing director Ram Reddy Ojili did not respond to queries relating to the sale.