AP Choudhary, Chairman and Managing Director of Rashtriya Ispat Nigam (RINL) said the firm would enter into an agreement with the AP Mineral Development Corporation (APMDC) to set up an iron ore and steel plant at Bayyaram in Khammam.
He informed reporters that the firm almost completed formalities with regard to the agreement.
Meanwhile, Kudremukh Iron Ore Company (KIOCL) would invest about Rs 1,000 to Rs 1,500 crore to set up beneficiation and pellitization plants of 1.2 million tonne per annum each depending on the availability of iron ore.
An agreement to this effect was signed between KIOCL APMDC and RINL in the presence of Chief Minister Kiran Kumar Reddy.
Official sources informed that around 36 months would be required to begin production of iron ore and commissioning of beneficiation and pellitization plants.