ArcelorMittal/Nippon Steel to set up steel plant in Andhra Pradesh with investment of Rs 61,780 crore

Hyderabad: In a shot in the arm to investment starved Andhra Pradesh, an integrated steel plant will come up in the north area of the state.

The State Investment Promotion Board (SIPB) that had met for the first time after TDP led NDA came to power on Tuesday had approved setting up of the integrated steel plant by Arcelor Mittal Nippon Steel India (AM/NS India). AM/NS India will establish an integrated steel plant including a captive port at Bagaraiahpeta near Nakkapalli in Anakapalle district. This company initially will invest Rs 61,780 crore to provide employment to 21,000 people.

The maiden SIPB meeting cleared investments worth Rs 85,083 crore in total which will create 33,966 jobs. The meeting cleared the proposals for launching of 10 heavy industries which include AM/NS India's steel plant.

The SIPB meeting mainly focussed on the proposed investments in the past five months, the MoUs entered into and the progress on these issues.

The LG Electronics India Pvt Limited will invest rs 5,001 crore providing 1495 jobs, the Kalyani Strategies System Limited is setting up its plant with Rs 1,430 crore providing 565 jobs, Phillips Carbon Black Limited to provide 200 jobs with an investment of Rs 3,798 crore and Azad India Mobility Limited with an investment of Rs 1046 crore to give employment to 2,381 persons and investments by several other companies too are cleared by the meeting.

The officials informed the Chief Minister that the previous ruling dispensation paid only Rs 1961 crore as the incentives due to the companies while the earlier TDP regime had paid Rs 3883 crore to companies as subsidies.

Chief Minister N Chandrababu Naidu who chaired the SIPB meeting felt that besides meeting the needs of the companies the officials also should take care of the welfare of those who donate lands for the setting up of industries.

The Chief Minister advised the officials to adopt the land pooling system while acquiring land for ArcelorMittal steel plant and also adopt three varieties of land acquisition systems while allotting lands to the companies. The officials should be very transparent in land pooling like in Amaravati.

Also, as a second option those who are coming forward voluntarily to give their lands, they should be given proper training through skill development and provide necessary employment to them, the Chief Minister said, adding that otherwise land should be acquired by paying the best available package to the landowners.

The Chief Minister fully supported the opinion of the Deputy Chief Minister Pawan Kalyan that investments are important but at the same time the future of those who are coming forward to donate their lands is equally important.

The Chief Minister is very keen that frequent discussions should be held with the investors and told the officials to see to it that the industries are grounded at the earliest possible by removing all the obstacles that come in the way. The Ministers concerned and the officials should regularly track the agreements entered into with the investors.

Naidu also told the officials to work hard to attract investments to the State by resisting the stiff competition from all other states.

Stating that due to the adverse policies adopted by the previous government there were absolutely no investments in the state, the Chief Minister said that even those who have entered into Memoranda of Understanding (MOUs) with the state have left Andhra Pradesh in the past five years due to the policies adopted by the previous government.

Naidu told the meeting that all those who come forward to invest in the state should be accorded high respect and the official circles should extend all kinds of cooperation to them. Only then the youth will get employment opportunities, he said and added that if a discussion begins on one particular investment it should be tracked continuously till it materialises.