Andhra Approves ₹1.35 Lakh Cr ArcelorMittal Plant, Cuts Bar Licence Fee

In a significant boost to industrial investment in the state, the Andhra Pradesh Cabinet has approved the proposed establishment of a steel factory by ArcelorMittal Nippon Steel India (AMNSL) in Anakapalli district involving an investment of ₹1.35 lakh crore along with the construction of a dedicated captive port.

State Information and Public Relations Minister Kolusu Parthasarathy announced on Thursday. The steel works, which are proposed to be set up in two phases, will have a capacity of 17.8 million tonnes per annum (MTPA). Phase one entails an investment of ₹55,964 crore to manufacture 7.3 million tonnes per annum (MTPA) of steel by January 2029, generating 20,000 jobs. With an additional ₹80,000 crore investment by 2033, the second phase will enhance capacity to 10.5 MTPA generating 35,000 additional jobs.

The Cabinet has also approved a captive port for AMNSL at D.L. Puram — which has a 2.9-km waterfront — to facilitate logistics. The port will be constructed in two phases, the first phase with a capacity of 20.5 million metric tonnes per annum at a cost of ₹5,816 crore generating 1,000 jobs; the second phase adding 10.5 million metric tonne capacity at a cost of ₹5,380 crore generating 5,000 jobs. To enable the same, an amendment to Clause 30.1.1 of the Port Concession Agreement under the Indian Ports Act, 1908 was made.

On the tourism front, the Cabinet slashed the bar licence fee for 3-star and above hotels from ₹66 lakhs to ₹25 lakhs. “This will make hospitality investments much more appealing. “Earlier, the high fee had discouraged many hotels,” Parthasarathy said. He said the new policy would help realign the state’s tourism potential and assist the government’s plan to add 50,000 hotel rooms in the next five years.

The initiative aims to promote tourism, thereby stimulating economic activity and creating jobs in the hospitality and related sectors.

Present during the briefing was also state I&PR director Himanshu Shukla.