AP to clear projects worth Rs.20,421 Cr

Hyderabad:The State Level Investment Promotion Committee, headed by the chief secretary of Andhra Pradesh, would discuss incentives to new investment proposals worth Rs 20,421 crore under the mega project category.

Among the 25 proposals that would come up for clearance at tomorrow's meeting include a Rs 5,813-crore steel plant expansion project of SBQ Steel Limited in Nellore district, Rs 1,997 crore ferro alloys project proposed at Vizianagaram by Sarda Metals and Alloys Limited, Rs 1,687 crore inorganic chemical plant of KPR Chemicals, Rs 1,088 crore steel plant expansion project at Vizianagaram by Maa Mahamaya Industries Limited and a Rs 276-crore tractor manufacturing unit by Mahindra & Mahindra at its existing plant in Zahirabad.

The committee would discuss various incentives sought by these companies and make recommendations to the State Level Investment Promotion Board (SIPB) headed by the chief minister.

The state offers incentives in the form of concessions or waiver of sales tax (VAT) apart from providing power and training subsidy to industrial projects under the general policy framework. The SIPB route is meant for mega investments for which the board uses discretionary powers to decide on the quantum of incentives, and on providing roads and power at the doorsteps etc, over and above the general policy on a case by case basis.

Cement plants
The government has received seven proposals for setting up cement plants as the state has huge limestone reserves, the key input in cement manufacturing.

The investments are that of JSW Cement Limited for setting up a Rs 1,500 crore cement plant in Kurnool district, UltraTech Cement's capacity expansion (Rs 1,200 crore) in Anantapur district, Jaypee Cement Limited's Rs 1,200 crore greenfield plant in Krishna district and a Rs 1,000 crore cement plant in Kadapa district by Dalmia Cement Limited.

These apart, Royal Enfield has proposed a motorcycle manufacturing plant in Sri City SEZ in Nellore district with Rs 250 crore.

In addition to M&M's tractor unit and three small cement units that have been proposed in the region, TMT Tyres Private Limited and Hinduja Foundries are setting up a Butyl Tube manufacturing plant and an iron castings unit respectively in Medak district near Hyderabad.