AP Okays Sops To ArcelorMittal For Setting Up New Steel Plant

Vijayawada: Acting swiftly after receiving a proposal for a mega investment, Andhra Pradesh Government has approved a slew of incentives as per the AP Industrial Development Policy (4.0) 2024-29 to ArcelorMittal Nippon Steel India Limited (AMNSI) for setting up of 17.8 MTPA integrated steel plant in 2 phases (7.3 MTPA in first phase & 10.5 MTPA in Phase-2) at Rajayyapeta, DL. Puram, Vempadu, Buchirajupeta and Chandanada villages in Nakkapalli mandal of Anakapalli district, about 100 km from Visakhapatnam.

Extension of tailormade incentives and certain facilitation have been cleared as per the AP Industrial Development Policy (4.0) 2024-29 following the stamp of approval given by the State Investment Promotion Board (SIPB) and State Cabinet held recently under the chairmanship of Chief Minister N Chandrababu Naidu.

While the Phase-I will have a capacity of 7.3 MTPA, the Phase-2 will add another 10.5 MTPA. The total land required for the project initially is 2200 acres and for Phase-2 another 3,800 acres in addition to 440 acres for township. The investment envisaged for Phase-I is Rs.55,964 crore and for the second phase Rs.80,000 crore with total employment generation of 55,000 in both phases.

Timeline fixed for completion subject to required approvals is January, 2033. A captive port is proposed for handling vessels, material handling systems and back-up areas. There will be six bulk berths, nine multipurpose berths and two energy berths to handle 20.5 MMTPA in Phase-I and 28.99 MMTPA in Phase-2. Land required to be reclaimed is 148.26 acres in addition to 168.03 acres for both the phases. The total investment for the captive port is Rs5,816 crore for Phase-I and Rs5,382 crore for Phase-2.

The project proponent will be given about 2,200 acres at Rs51,39,690 per acre for Phase-I of the project, subject to verification by the officials concerned that the land requirement is as per steel plant norms. The recommendation of SIPB of the proposal of the Industries & Commerce Department to transfer about 700 acres falling within the Bulk Drug Park at Nakkapalli after approval of the Government of India duly identifying and allocating about 710 acres of alternate lands to Bulk Drug Park project is also

agreed. It is to note that this 700 acres is part of the total 2,200 acres allotted under Phase-I.

The GO stated that approval to APIIC has been given to proceed for acquiring 440 acres for township under land acquisition for others. In-principle approval has been given to APIIC to proceed for acquiring second phase lands under LA for others subject to progress of Phase-I of the project as per timelines.

The government has also given in-principle approval for land allocation for captive port by the department concerned, as per captive port norms, subject to progress of Phase-I of the project as per norms. It has been decided to facilitate inputs such as power, water, rail and road connectivity, usage of nearby quarries and tripartite MoU with NMDC as per the requirements and the rules, as per the request of the AM/NS India.