Andhra Pradesh State Investment Promotion Board has given its nod for the allotment of 860 acres of government-owned land adjacent to Krishnapatnam Port to a Jindal Steel and Power Ltd (JSPL) subsidiary for the construction of a new steel plant, a senior company official has said.
Headed by Chief Minister YS Jaganmohan Reddy, the board has approved the allotment of this land, held by Andhra Pradesh Industrial Infrastructure Corporation in Thamminapatnam in Nellore district, to Jindal Steel Andhra Ltd, the official told BusinessLine.
Choosing the strategic location, JSPL had prepared a detailed project report for 2.25 MTPA integrated steel plant at a planned investment of ₹7,500 crore, for which it had sought 1,000-1,300 acres of government land. JSPL has estimated that the plant will provide direct employment to nearly 2,500 people and lead to an overall business activity of ₹13,000 crore.
Based on how optimally JSPL is able to design the plant, its production capacity could be higher at 3 MTPA, the official said.
“This is a strategic location. Coking coal is imported. Iron ore can come from Karnataka or Odisha,” the official said. However, major expenditure on the project will not kick off before a couple of years until the necessary clearances are obtained, the official added.