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. It has also cleared the company’s proposal to allow it to construct a captive port.
Disclosing the Cabinet decisions at a press conference on Thursday, Information and Public Relations (I&PR) Minister Kolusu Parthasarathy said the plant would produce 17.8 MTPA of steel in two phases.
“The company has been permitted to establish a captive port with a 2.9-km waterfront at D.L. Puram in Anakapalli district. It will come up in two phases. To facilitate this, Clause 30.1.1 of the Port Concession Agreement (as per the Indian Ports Act, 1908) related to the Kakinada Gateway Port Limited (KGPL) has been amended,” he said.
The first phase of the captive port, with a capacity of 20.5 million metric tonnes per annum, would be constructed at a cost of ₹5,816 crore. It would generate 1,000 jobs. In the second phase, the captive port would be established with a capacity of 10.5 million metric tonnes per annum. To be built at a cost of ₹5,380 crore, it would generate 5,000 jobs, the Minister said.
Mr. Parthasarathy said timelines had been fixed for the steel plant. In the first phase, it would have a production capacity of 7.3 MTPA, requiring an investment of ₹55,964 crore. The goal was to begin production by January 2029 and create 20,000 jobs.
In the second phase, the capacity would be expanded to 10.5 MTPA with an investment of ₹80,000 crore. It was targeted to complete it by 2033 and create 35,000 jobs, he said.
Stating that the government saw a huge potential in tourism and aimed at boosting employment and revenue by promoting the sector, the Minister said the government planned to encourage construction of 50,000 hotel rooms over the next five years.
The bar licence fee for 3-star and higher-category hotels was reduced from ₹66 lakh to ₹25 lakh, making the tourism sector more investment-friendly, he said. “The decision will not affect the revenue as many 3-star hotels have not opted for bar licence in view of the huge fee. The decision will boost hospitality and tourism in Andhra Pradesh, enhance economic growth, and generate more employment,” he said.
State Information and Public Relations Director Himanshu Shukla was present.
