VIJAYAWADA: The State government has reportedly invited a delegation from South Korean steel giant POSCO headquartered in Seoul to confirm the proposal to set up an integrated steel plant at Krishnapatnam in Nellore district. In a letter written to Chairman and Managing Director of POSCO India Sung Lae Chun, it is learnt to have said further discussions could be held on the proposal to set up the plant in the land already identified jointly by the government and the steel company at Krishnapatnam.
Sources said the government also expressed its willingness to consider further support in the form of fiscal and non-fiscal incentives and expedite the process of handing over the land once the two sides come to a common understanding on the way forward. The government invited the delegation from POSCO to have further discussions on the support under the AP Industrial Development Policy 2020-23 and firm up the proposal, the sources explained. “The incentives given in Industrial Policy of AP 2020-23 are available and any specific requests in line with the volume of investment and employment opportunities and subsidiary industrial growth that will be generated, the State government will be willing to consider further support in the form of fiscal and non-fiscal incentives,” the government is quoted to have said.
The definitive terms (of incentives) will be discussed when the delegation visits the State, a senior official told TNIE. It may be recalled that representatives of POSCO India visited Krishnapatnam in December 2020. Later, the CMD of POSCO India visited Krishnapatnam and interacted with Krishnapatnam Port authorities on their proposal to set up a steel plant.
In its discussions with the steel giant, the government had earlier pointed out that it had always been a front-runner in providing unparalleled support to the industry and the State’s industrial policy 2020-23 was considered one of the best in the country. AP has ranked No 1 in Ease of Doing Business among all the States and it is a testament to the government’s strong commitment to industrial growth,” the sources said. POSCO was also informed that Krishnapatnam is poised to be the next industrial growth centre of Andhra considering its proximity to major cities like Chennai and Bengaluru. The government is of the view that the steel plant at Krishnapatnam can be an anchor industry in driving the economic activity in the region.
AP ready to lend more support to POSCO
Sources said the government has expressed its willingness to consider further support in the form of fiscal and non-fiscal incentives to POSCO and also expedite the process of handing over the land once the two sides come to a common understanding on the project