Cabinet nod for captive port at Anakapalle

Vijayawada: The AP Cabinet has approved several measures to boost employment by promoting industrialization in the state. In line with this, the Cabinet on Thursday approved the proposal for a captive port at DL Puram in Anakapalle district with a waterfront of 2.9 km to be set up by ArcelorMittal Nippon Steel India Ltd (AM/NSL).

Information and Public Relations Minister Kolusu Parthasarathy detailed the Cabinet’s decisions.

An amendment to Clause 30.1.1 of the Port Concession Agreement related to Kakinada Gateway Port Limited (KGPL) facilitates the project. The first phase, with an investment of Rs 55,964 crore, will establish a 7.3 million metric tonnes capacity steel plant by January 2029, creating 20,000 jobs.

The second phase, set for completion by 2033, involves an Rs 80,000 crore investment for an additional 10.5 million metric tonnes, generating 33,000 jobs. A captive port with a 20.5 million metric tonnes per annum capacity will be set up alongside the first phase for Rs 5,816 crore, creating 1,000 jobs. The second-phase port, costing Rs 5,380 crore, will provide 5,000 more jobs. The Chief Minister has directed officials to ensure timely project completion.

The government is committed to preventing the Vizag Steel Plant’s privatization, converting Rs 2,400 crore in power bill dues into equity, resulting in profits in March. Security will transition from Central to State police.

To boost coastal development, plans are in motion to establish ports and shipping yards. Recognizing tourism’s potential, the government aims to expand the sector for increased revenue and job creation. This includes constructing 50,000 hotel rooms this year. Additionally, the Cabinet approved reducing license fees for three-star and above hotels from Rs 66 lakh to Rs 25 lakh to encourage investment in hospitality.

The Ugadi Awards were held on a grand scale after years, highlighting the government's commitment to arts and culture. Several Government Orders (GOs) proposed by the Youth Services and Culture Department were approved.

The Cabinet ratified a March Government Order guaranteeing Rs 710 crore in loans from HUDCO and AP Power Finance Corporation. Additionally, Rs 1,735.35 crore in compensation was approved for M/s NECL and APGENCO due to past policy missteps regarding the Polavaram Hydro Electric Project.

An inquiry has been ordered into a Rs 44.6 crore financial assistance proposal for the Vempadu Major retaining wall project. The Cabinet also approved the ‘Jalaharathi Corporation’ under the Water Resources Department to execute the Rs 80,000 crore Polavaram-Banakacherla Link Project, aimed at maximizing water resource utilization and fostering development in Rayalaseema.

Additionally, IAS officers will spend three days in rural areas to devise a roadmap for rural development and welfare initiatives. With these strategic investments and policies, the State Government aims to drive industrialisation, infrastructure, tourism, and rural welfare for comprehensive growth.