AP Cabinet approves establishment ArcelorMittal Nippon Steel plant

VIJAYWADA : The Andhra Pradesh State Cabinet has approved the ArcelorMittal Nippon Steel India Limited (AMNSL) proposal to set up a plant with an investment of ₹1.35 lakh crore in two phases to produce 17.8 million tonnes of steel. It has also cleared the company’s proposal to allow it to construct a captive port.

For this purpose as requested by the company, approval has been given for the establishment of a captive port with a 2.9 km waterfront at DL Puram in Anakapalle district. Briefing media persons on the decisions taken by the Cabinet, the Minister for Housing, Information and Public Relations, Kolusu Parthasarathy, said that for the permission to this captive port, Clause Number 30.1.1 (Indian Ports Act-1908) of the Port Concession Agreement relating to Kakinada Gateway Port Limited (KGPL) has been amended.

As per this decision, in the first phase a steel plant with a production capacity of 7.3 million metric tonnes will be established with an investment of Rs 55,964 crore, the Minister said. A target has been set to begin the first phase production by January 2029, he informed. Nearly 20,000 jobs will be provided in the first phase, the Minister said, adding that similarly a target has been set to complete the second phase of the steel plant by 2033 with an investment of Rs 80,000 crore to generate 10.5 million metric tonnes.
Around 33,000 jobs will be created in the second phase, Parthasarathy informed.

For the steel plant to be established in the first phase, a captive port with a capacity of 20.5 million metric tonnes per annum will be set up by January 2029 with Rs 5,816 crore to connect this steel plant with which 1,000 employment opportunities will be crested, he stated. Similarly, the second phase captive port will be established with Rs 5,380 crore by January 2029 to interlink it with the second phase of the steel plant to be set up with a capacity of 10.5 million metric tonnes, the Minister said and stated that 5,000 jobs will be created with this.

The Chief Minister has instructed the officials to ensure that the project is completed within the stipulated time without any hurdles, Parthasarathy said. The Cabinet also gave its nod for the proposal made by the Energy Department for the ratification of the GO issued in March for Government’s guarantee for the HUDCO and AP Power Finance Corporation to obtain Rs 710 crore loan.

This apart, the Cabinet also cleared the implementation of the arbitration award issued on December 8 last year to compensate the loss of Rs 1,735.35 crore to M/s NECL and APGENCO due to the faulty policies adopted by the previous government with regard to the contract of Polavaram Hydro Electric Project, the Minister explained.

The loss of Rs 742 crore for M/s NECL and Rs 986.17 crore will be compensated, he added. The Chief Minister ordered for a detailed inquiry into the proposal made by the Water Resources Department for an additional financial assistance of Rs 44,60,15,795 for building the retaining wall of Vempadu Major of Nagarjunasagar Left Branch canal through the Chintalapudi Lift Irrigation Scheme package No IV.
This apart, the Cabinet also approved for setting up a special purpose vehicle, the ‘Jalaharathi Corporation’, by the Water Resources Department with hundred percent government management under Companies Act-2013 to implement the Polavaram-Banakacherla Link Project works for utilising the waters from Godavari Floods and other projects.

Also, the proposal for appointing necessary directors and other staff members is cleared by the Cabinet.
This project has been proposed to not only make use of all water resources available in the state but also to develop all the regions, particularly to transform Rayalaseema as the land of gems. The cost of this project is estimated to cost Rs 80,000 crore, he noted.