Arcelor Mittal-Nippon Steel India to Receive Rs 28,000 Crore in Incentives for Steel Plant in Andhra Pradesh

Visakhapatnam, May 30 (KNN) Arcelor Mittal-Nippon Steel India is set to receive incentives worth up to Rs 28,000 crore from the Andhra Pradesh government for the first phase of its upcoming integrated steel plant in Anakapalli, according to sources familiar with the development.

The steel major, which is the fourth-largest producer in the country, has begun land acquisition for the greenfield plant, which will have an initial production capacity of 7.3 million tonnes.

The first phase of the project will involve an investment of nearly Rs 56,000 crore and is expected to be completed by January 2029.

The incentives will be spread over 20 years and are subject to the company meeting specific conditions, including timelines for implementation, investment targets, and job creation commitments.

Key incentives include a 100 per cent reimbursement of net State Goods and Services Tax (SGST) and sales tax for 15 years, exemption from electricity duty for 15 years, and waiver of stamp duty and registration charges for land purchased.

Additionally, AM/NS will receive power reimbursement at Rs 1 per unit for 15 years and industrial water supply at Rs 50 per kilolitre for 10 years.

The first phase of the project will span about 2,200 acres, with an adjoining 440-acre township also planned to support operations and housing.

This massive investment is expected to generate significant employment opportunities and boost industrial growth in the region. The state government views the project as a major step toward making Andhra Pradesh a key player in the Indian steel industry.

(KNN Bureau)