Hyderabad, May 24: Andhra Pradesh will have its second integrated steel plant, the first in the private sector.

The Rs 4,500-crore plant in the backward district of Kadapa will have a capacity of two million tonnes. State chief minister Y.S. Rajasekhara Reddy is from Kadapa. Rashtriya Ispat Nigam Limited’s Visakhapatnam Steel Plant is the other integrated producer in the state. The state government has signed the MoU for the plant with Brahmani Industries, a subsidiary of Obulapuram Mining Company which is based in Bellary, Karnataka.

Obulapuram promoters include G.Janardhan Reddy, an iron ore exporter, and Karnataka tourism minister B. Sreeramulu. Reddy is the chairman-cum-managing director of Brahmani Industries and Obulapuram Mining.

The state government has provided 8,000 acres of land along with water and subsidies for the project.