On Thursday, 3 April, Information and Public Relations Minister K Parthasarathy announced that a captive port will be established at DLP Uram in the Anakapalli district to serve the upcoming steel plant. The port will feature a 2.9 km waterfront to facilitate its operations.
Published Apr 04, 2025 | 2:59 PM ⚊ Updated Apr 04, 2025 | 2:59 PM
Andhra Pradesh Cabinet clears Rs 1.35 lakh crore Arcelor Mittal's steel factory. (X)
Synopsis: The Andhra Pradesh cabinet approved a ₹1.35 lakh crore investment in the steel sector, with ArcelorMittal Nippon Steel to build a steel plant and captive port in Anakapalli. The steel plant will create 55,000 jobs. The cabinet also focused on boosting tourism, reducing bar license fees, compensating APGENCO, and approved Laurus Labs’ ₹5,000 crore drug manufacturing unit in Anakapalli.
The Andhra Pradesh cabinet has cleared the ₹1.35 lakh crore big-ticket investment in the steel sector.
It has given the green signal for ArcelorMittal Nippon Steel India Limited to set up a steel plant with a production capacity of 17.8 million tonnes in two phases.
On Thursday, 3 April, Information and Public Relations Minister K Parthasarathy announced that a captive port will be established at DLP Uram in the Anakapalli district to serve the upcoming steel plant. The port will feature a 2.9 km waterfront to facilitate the ArcelorMittal Nippon Steel factory operations.
The cabinet, chaired by Chief Minister N Chandrababu Naidu, had okayed the establishment of the port. Clause 30.1.1 of the concession agreement with Kakinada Gateway Port Limited (KGPL), under the Indian Ports Act, 1908, has been amended.
In the first phase, a steel plant with a capacity of 7.3 million metric tonnes per year will be set up at APIIC SEZ in Nakkapalli in the Anakapalli district with an investment of ₹55,964 crore, aiming to start production by January 2029. This phase will generate employment for about 20,000 people.
The second phase aims to establish a plant with a 10.5 million metric ton per year capacity with an ₹80,000 crore investment, to be completed by 2033, creating jobs for approximately 35,000 people.
The captive port, proposed to be built for the steel plant, will be constructed by January 2029 with ₹5,816 crore, generating 1,000 jobs.
The Chief Minister instructed officials to ensure timely completion without any hurdles.
At the meeting, Chandrababu Naidu stressed the need to impart a thrust to the tourism sector, as it holds significant potential for growth in Andhra Pradesh. The Chief Minister pointed out that the sector could generate revenue for the government and create large-scale employment. Temple tourism will be the key focus.
The tourism department aims to facilitate adding approximately 50,000 hotel rooms in the next five years to meet rising demand.
By another decision, the cabinet approved a proposal to reduce bar license fees for 3-star and above category hotels from ₹66 lakh to ₹25 lakh.
The I&PR Minister said that this is expected to create a conducive environment for the hospitality sector and bring Andhra Pradesh on par with other states in tourism and hospitality, spurring economic growth and employment.
The cabinet also cleared a proposal to implement the arbitration award dated 8 December 2024 to compensate M/s NECL and APGENCO for losses totaling ₹1,735.35 crore due to prior government decisions regarding the Polavaram Hydro Electric Project contract. Of this, ₹742 crore will go to M/s NECL and ₹986.17 crore to APGENCO.
In another important decision, the cabinet approved the formation of a Special Purpose Vehicle (SPV) named “Jala Harathi Corporation” under the Companies Act, 2013, to implement and complete the “Polavaram-Banakacherla Link Project.” The SPV will be 100 percent government-owned and staffed accordingly.
This project aims to utilise the Godavari floodwaters for overall state development, especially focusing on transforming Rayalaseema into a prosperous region. The estimated cost of the project is ₹80,000 crore.
In another development outside the cabinet, the government said that Laurus Labs would set up a bulk drugs manufacturing unit with an investment of ₹5,000 crore in Gorapudi village in the Anakapalli district. This project is expected to provide direct and indirect employment to 7,500 people.
Laurus Labs has already invested ₹6,500 crore in the Visakhapatnam region since 2007, providing employment to 10,000 people. The company also operates units in Bengaluru and Hyderabad.
As part of its expansion, Laurus Labs will produce specialty chemicals, such as fermentation-based products, crop science chemicals, and green chemistry materials, in Rambilli.
The company has been in discussions with the state government for the past few days regarding its expansion.
On Thursday, Laurus Labs CEO Chava Satyanarayana and Executive Vice President Chava Narasimha Rao met Chief Minister Chandrababu Naidu and expressed gratitude for the land allocation.
The chief minister assured full support from the government and urged the company to commence groundwork at the earliest. He stated that this industry will provide large-scale employment opportunities to the youth.
(Edited by Sumavarsha)
