Govt. offers special package of incentives to Kadapa steel plant

The State government on Sunday announced a special package of incentives to JSW A.P. Steel Limited for the establishment of a 2-MMTPA Integrated Steel Plant (ISP) at Sunnapurallapalle village of Jammalamadugu mandal in Kadapa district, to be named as JSW-Rayalaseema Steel Plant.

It was stated in G.O. Ms.No.131, issued by Secretary (Industries & Commerce) N. Yuvaraj, that the JSW Steel Limited proposed to set up the ISP in two phases of 1 MMTPA production capacity each, with an aggregate investment of ₹16,350 crore (Phase-I — ₹4,500 crore and Phase-II — ₹11,850 crore).

The JSW Steel intended to begin the construction of first phase in January 2026 and begin commercial production by April 2029.

The government is allotting 1,100 acres at Sunnapurallapalle on an Outright Sale Basis (OSB) at a rate ₹5 lakh per acre, and 200 acres at the same village on OSB for the establishment of a township.

Tailor-made incentives are being offered up to 50% of Fixed Capital Investment (FCI), allowing exemption of the project from the List of Ineligible Industries under the A.P. Industrial Development Policy (4.0) 2024-29 contingent upon investment of ₹3,730 crore as FCI by December 2028. Similar incentives are made applicable for further phases of investment.

Other incentives are 20% capital incentive up to ₹607.20 crore to be disbursed over a period of 10 years, electricity duty subsidy up to ₹1,092 crore within 10 years, decarbonization subsidy up to ₹149.20 crore on investment of ₹3,730 crore, and stamp duty reimbursement of ₹4.875 crore.

The same incentive of 50% of FCI is applicable for the second phase of investment by JSW Rayalaseema Steel Limited for the establishment of additional 1 MMTPA Steel Plant, provided the same is commissioned as per the committed timelines.

The facilities approved by the government are: double circuit power transmission line of 400KV from Jammalamadugu substation, along with a distribution substation, for power requirement of 268 MW, water supply pipeline, along with pumping infrastructure, from Gandikota reservoir for an assured supply of 2 tmc ft per annum and a 15-km pipeline from Mylavaram dam, a 12-km four-lane access road to NH-67, and a 12-km extension railway line to the plant from Muddanuru station (between Proddatur – Yerraguntla station).