Govt. sanctions special packages for AMNSI and LG in Andhra Pradesh

While AMNSI proposes to set up a 17.8 MTPA integrated steel plant in two phases in Anakapalli district, LG Electronics will establish its manufacturing unit at Sri City in Tirupati

The Government of Andhra Pradesh has issued orders allotting 2,200 acres land for the first phase of steel plant to be set up by M/s ArcelorMittal Nippon Steel India (AMNSI) Limited in Nakkapalli mandal of Anakapalli district.

The AMNSI has proposed to set up a 17.8 MTPA integrated steel plant in two phases. The State Investment Promotion Board (SIPB) has recently approved the project.

The State government has accorded administrative sanction for the special package of incentives to the AMNSI to set up its plant in Anakapalli district.

Similarly, a special package has been announced to M/s LG Electronics Private Limited for setting up a refrigerator, air- conditioner and washing machine unit in Sri City, Tirupati.

Two phases

The AMNSI proposes to set up the steel plant in two phases — 7.3 MTPA in the first and 10.5 MTPA in the second, at Rajayapeta, D.L. Puram, Vempadu, Buchirajupeta, and Chandanada villages of Nakkapalli mandal.

In the first phase, the AMNSI proposes to set up the plant in 2,200 acres land, 440 acres for township. It will invest ₹55,964 crore, with employment generation of 20,000.

In the second phase, the plant will come up in 3,800 acres with an investment of ₹80,000 crore, generating 35,000 jobs.

The timeline for completion of the first phase is January 2029. The second phase is proposed to be completed by 2033.

Captive port

The AMNSI also proposes to set up a captive port for vessels, material handling system and back-up areas.

The AMNSI has urged the government to provide land and other critical inputs such as road, power, water for ensuring expeditious implementation of the project.

The proposal was placed before the SIPB meeting on November 19, wherein it was recommended to extend special package of incentives to AMNSI.

“The incentives shall be applicable, subject to the company adhering to the definite timelines for implementation of the project and investment, and employment commitment from the company as per the Detailed Project Report (DPR) submitted and subject to certain conditions,” N. Yuvaraj, Secretary, Industries and Commerce, said in a G.O. issued on November 26 (Tuesday).

The government had decided to allot about 2,200 acres of land for Phase-I of the project, subject to verification by the department that the land requirement was as per steel plant norms.

The recommendation of the State Investment Promotion Committee (SIPC) to transfer about 700 acres falling within the Bulk Drug Park to AMNSI, after approval of the GoI, had also been agreed.

The government would identify and allocate about 710 acres of alternative land to the Bulk Drug Park project. The 700 acres of land was a part of the total 2,200 acres allotted under Phase-I.

The government had given approval to the A.P. Industrial Infrastructure Corporation (APIIC) to acquire 440 acres of land for the township.

Further, in-principle approval was given to the APIIC to acquire land for the second phase, subject to progress of the Phase-I of the project as per the timeline.

It was also decided to allocate land for the captive port as per norms, subject to progress of Phase-I of the project.

The departments concerned would facilitate provision of power, water, rail and road connectivity, usage of nearby quarries, and tripartite MoU with the NMDC.

Incentives

The AMNSI would be exempted from stamp duty and registration fee. Besides, it would be provided industrial water at ₹50 per kl for 10 years. It would also be reimbursed 100% net SGST during construction and sale for 15 years. Reimbursement of power at ₹1 per unit for 15 years and provision of capital subsidy would also be extended.

M/s LG Electronics Private Limited proposed to set up its unit for manufacturing refrigerators, air-conditioners and washing machines, and components such as compressors (for air-conditioner & refrigerators), motor compressor and heat exchangers with an estimated investment of ₹5,001 crore, generating direct employment of 1,495 at Sri City. It sought certain facilities and incentives.

The government gave approval to the APIIC to proceed with acquiring 188 acres of land under Land Acquisition Act, and transfer it to Sri City on actual cost basis.

“Considering it a mega investment of more than ₹5,000 crore over a period of four years and its potential to bring ancillaries and create a ecosystem for white good manufacturing in the State, approval has been given to extend fiscal Incentives,”’ Mr. Yuvaraj said in another G.O.

It was decided to waive stamp duty and registration fee, and give 100% subsidy on water consumption for 20 years, SGST refund on construction work, 100% exemption from electricity duty for 20 years, and 50% subsidy for electricity tariff for 20 years. It was decided to give ₹6,000 per month per worker as Skilling Subsidy for five years.

Published - November 27, 2024 07:18 pm IST