Amaravati, July 15 (PTI) The Andhra Pradesh government on Thursday announced a slew of incentives for various companies to give a major push to industrialisation in Kadapa and SPS Nellore districts.
In Chief Minister Y S Jagan Mohan Reddys home district Kadapa, the proposed Mega Industrial Hub, named after himself and his late father, will get a big thrust as two 'early bird' companies came forward to set up mega projects at a total investment of Rs 887 crore.
The Mega Industrial Hub will come up at Kopparthy near Kadapa where an electronics manufacturing cluster is also in the pipeline.
Industrialisation in Sri Potti Sriramulu Nellore district, home of Industries Minister Mekapati Goutham Reddy, has also been given a further boost with the government allocating 860 acres to Jindal for setting up an integrated steel plant and offering incentives to Greentech Industries for expanding its manufacturing capacities.
Special Chief Secretary, Industries, Infrastructure and Investments, R Karikal Valaven issued a series of orders granting the incentives under different policies after the State Investment Promotion Board cleared the proposals last month.
Jindal Steel Andhra Ltd has proposed to set up a 2.25 million tonnes per annum integrated steel plant in SPS Nellore district with a total investment of Rs 7,500 crore.
Over four years, it has promised to create 2,500 direct jobs and indirect employment for another 15,000.
Accordingly, the government decided to allot 860 acres of land at Tamminapatnam and Momidi villages, cancelling the earlier allotment of 840 acres made to Kinneta Power since the company could not build the thermal power plant as proposed.
The land will be sold to Jindal at the prevailing price and the company will also be required to bear the Rehabilitation and Resettlement costs, according to the Special Chief Secretarys order.
Greentech Industries, which has proposed to expand its plant at the AP SEZ at Naidupet in SPS Nellore district by investing Rs 627 crore, has been offered incentives under the Industrial Development Policy 2020-23.
Besides, the government will reimburse power tariff at the rate of Re 1 per unit for five years, amounting to Rs 3.75 crore, the Special Chief Secretarys order said.
In the Kopparthy Mega Industrial Hub, Pitti Rail and Engineering Components Limited will establish a customised engineering products manufacturing facility with an investment of Rs 401 crore and create direct employment to 2,000 persons by April 2024.
Pitti has been allotted 117.85 acres of land at Rs 10 lakh per acre against the original cost of Rs 25 lakh per acre as this is the first early bird, anchor unit in the Hub, according to Valaven.
The government will provide an investment subsidy of Rs 10 crore and reimburse 100 per cent State Goods and Services Tax for eight years.
Other incentives like reimbursement of power tariff and logistics subsidy of Rs 50 lakh per annum for five years will also be extended.
Furniture major Nilkamal Limited will be the second anchor unit at the Kopparthy Mega Industrial Hub that will establish a greenfield project to manufacture furniture, mattresses and material handling products.
It will invest Rs 486 crore and generate 2,030 jobs by March 2026.
Nilkamal will get 105 acres of land at Rs 10 lakh an acre.
Incentives will be similar to those offered to Pitti, the Special Chief Secretarys order said. PTI DBV ROH ROH