On the Day One of Andhra Pradesh chief minister N Chandrababu Naidu's visit to China, his publicity managers claimed that he had struck a major deal with a steel major Ansteel and that it had agreed to set up its steel plant in Kadapa at an investment of Rs 3,000 crore.
There were also reports that Naidu had offered the land earlier allotted to Brahmani Steels, proposed to be set up by Karnataka mining don Gali Janardhan Reddy.
However, within a day of the CMO making a grand announcement, it was revealed that Ansteel is a heavily loss-making company.
According to the study done by some social media groups, Ansteel which was established in 1997, has been running in losses for the last three years.
In 2013, it had a turnover of Rs 10,000 crore, but it had incurred a loss of Rs 300 crore in the first quarter of this year. What is worse, it has not been able to clear any bills for the last 270 days.
Ironically, the total value of the company’s assets is Rs 9,000 crore. And how can it invest Rs 3,000 crore in setting up steel factory in AP?
It is not known who has worked out the deal for Naidu, but he has to take serious action against the officials for misleading him about the Chinese company,
