Andhra Pradesh Cabinet clears ₹1.35 lakh crore ArcelorMittal Nippon Steel plant
Amaravati (Andhra Pradesh): The Andhra Pradesh Cabinet on Thursday approved the establishment of a ₹1.35 lakh crore ArcelorMittal Nippon Steel India (AM/NS India) steel plant, aimed at boosting industrialisation and large-scale employment, PTI reported.
During the e-cabinet meeting, the state government sanctioned the construction of a 17.8-million-tonne steel mill in two phases.
"The two-phase, 17.8 million-tonne, ₹1.35 lakh crore AM/NS India steel plant proposal was approved by the Cabinet," said Minister for Information, Public Relations, and Housing Kolusu Parthasarathy at a press conference at the Secretariat, PTI reported.
Additionally, as per AM/NS India’s request, the Cabinet approved the construction of a 2.9 km waterfront captive port at DL Puram in Anakapalli district.
The first phase of the project, costing ₹55,964 crore, will have a capacity of 7.3 million tonnes and is expected to begin operations by January 2029, generating 20,000 jobs, Parthasarathy said.
The second phase, worth ₹80,000 crore, will add 10.5 million tonnes of capacity and is slated for completion by 2033.
The Cabinet also endorsed a decision to convert Vizag Steel Plant's (VSP) ₹2,400 crore power bill into equity, which, according to Parthasarathy, helped VSP achieve profitability in March.
To support the hospitality sector, the Cabinet reduced the bar licence fee for three-star and above category hotels from ₹33 lakh to ₹25 lakh, aiming to facilitate the creation of 50,000 hotel rooms over the next five years.
Further, the Cabinet approved Andhra Pradesh Power Finance Corporation Ltd to secure a ₹710 crore loan from the Housing and Urban Development Corporation (HUDCO).
It also sanctioned the implementation of an arbitration award from December 8, 2024, which mandates a ₹1,735 crore compensation for Navayuga Engineering Company Limited (NECL) and Andhra Pradesh Power Generation Corporation Limited (APGENCO), reportedly due to past policies.
In a key infrastructure push, the government approved the formation of Jala Harathi Corporation, a Special Purpose Vehicle (SPV) under the Water Resources Department, to oversee the ₹80,000 crore Polavaram-Banakacherla project.
Additionally, Parthasarathy announced a new initiative where IAS officers will spend three days and two nights in villages to develop a roadmap for local development and welfare schemes for the underprivileged.
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