Kadapa, Oct. 7: Stage is set for establishment of another steel factory in the Kadapa district. The district officials inspected 5,500 acres in Special Economic Zone (SEZ) of Tadigotla and Ambavaram panchayats near the Kadapa city. The owner of Penna Cement factory came forward to establish the steel factory in the district. Earlier, the BMM company came forward to establish steel factory in the site and later backtracked. the BMM mining company managing director, Mr Dinesh Singhvi, Mr Laxmi Mittal and others inspected sites having iron ore. The Chief Minister, Dr Y.S. Rajasekhar Reddy, had announced that another steel factory would be established in the district. Already, Bramhani steel factory is being established in the district. Earlier, industrialists, who inspected the site, backtracked due to change in the government regulations. Mr Dinesh Singhvi, who had deposited Rs 6 crore with the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) for acquiring 5,500 acres in the SEZ, taken back the money. Officials are gearing up to hand over the land to the Penna Cement management that came forward to establish the steel factory. Efforts are on to start the factory works by the Chief Minister in November.