VIJAYAWADA: The Andhra Pradesh Cabinet meeting, chaired by Chief Minister N Chandrababu Naidu, has approved a captive port for ArcelorMittal Nippon Steel India Private Limited (AM/NS India), which is establishing a steel plant with a capacity of 17.8 million metric tonnes per annum at Rajayyapeta in Anakapalli district.
This pivotal decision, taken at the e-cabinet meeting held at the State Secretariat in Amaravati on Thursday, underscores the State’s push towards industrialisation and job growth.
The steel plant, a collaboration between global steel leader ArcelorMittal and Japan’s Nippon Steel, will be rolled out in two phases with a combined investment of Rs 1.35 lakh crore.
The State Cabinet greenlit the 2.9 km waterfront captive port for AM/NS India at DL Puram village in Anakapalli district, modifying the concession agreement with Kakinada Gateway Port Limited (KGPL) to facilitate the project.
Captive port’s initial phase costing Rs 5,816 cr to handle 20.5 million tonnes
The State is harnessing this project to cement its status as an industrial hub, prioritising employment opportunities.
Briefing mediapersons of the State Cabinet’s decisions, Minister for Information and Public Relations Kolusu Parthasarathy said Clause 30.1.1 of the Indian Ports Act 1908 in the KGPL Port Concession Agreement has been amended to permit the captive port.
The steel plant’s first phase with an investment of Rs 55,964 crore will produce 7.3 million metric tonnes annually by January 2029, generating 20,000 jobs. The second phase, backed by Rs 80,000 crore, will ramp up capacity to 10.5 million metric tonnes by 2033, adding 33,000 jobs. The captive port’s initial phase, costing Rs 5,816 crore, will manage 20.5 million metric tonnes per annum by 2029, creating 1,000 jobs, while its Rs 5,380 crore second phase will support the expanded plant, yielding 5,000 more jobs. Officials were told to ensure timely execution of the project, he said.
Beyond this, the Cabinet addressed the issue of Visakhapatnam Steel Plant, converting Rs 2,400 crore power dues into equity, which led to profits in March, and opted to replace Central police with State forces for security. Coastal development, including more ports and shipping yards, remains a key focus, he added.
Anakapalli MP CM Ramesh praised the DL Puram port approval, thanking the CM, and Dy CM Pawan Kalyan for promoting regional growth. He termed it a game-changer for Anakapalli, boosting economic growth and jobs.
Laurus Labs to invest Rs 5,000 cr in AP, create 7.5k jobs
Laurus Labs, a leading pharmaceutical company, has proposed a Rs 5,000 crore investment to establish bulk drug manufacturing units in IP Rambilli Phase-2 at Gorapudi village, Anakapalli district. The project is expected to generate 7,500 direct and indirect jobs. Since 2007, Laurus Labs has invested Rs 6,500 crore in the Visakhapatnam region, employing 10,000 people. With facilities in Bengaluru and Hyderabad, the company now aims to expand to Rambilli to produce specialty chemicals, fermentation products, crop science chemicals, and green chemistry solutions. On Thursday, CEO Chava Satyanarayana and Executive VP Chava Narasimha Rao met Chief Minister N Chandrababu Naidu at the State Secretariat, thanking him for land allocation