AP invites Posco for discussions for greenfield steel plant at Krishnapatnam

Andhra Pradesh government has invited Korean company Posco to discuss their proposal for setting up a greenfield integrated steel plant at Krishnapatnam in Nellore district.

The move comes within days of the State Cabinet nod for Liberty Steel India Limited joint venture for setting up of a greenfield steel plant in Kadapa district of the State.

R Karikal Valaven, Special Chief Secretary, Industries and Commerce, AP, in a letter addressed to Sung Lae. Chun, POSCO India CMD, has invited Posco for discussions to take forward their proposal under the AP Industrial Development Policy 2020-23 and firm up the plans.

He wrote, “In this regard, I have been briefed about the visit of Posco-India’s team to Krishnapatnam on 18 December, 2020, and your personal visit to the site on 10 February, 2021. I believe that your visit to Krishnapatnam and the interaction with Krishnapatnam Port authorities was useful in this regard.”

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“During your meeting with the AP Government officials, we expressed our keen interest to have Posco set-up its integrated steel plant at Krishnapatnam and we have committed to provide full support to the company.”

“I would like to highlight the fact that AP Government has always been a front runner in providing an unparalleled support to the industry and the AP’s Industrial Policy 2020-23 is considered as one of the best in the country. AP has consistently ranked No. 1 in Ease of Doing Business rankings among the Indian states and it is a testament to our strong commitment to industrial growth. With the same enthusiasm, I would like to extend an invite to the delegation from Posco Head Quarters at Seoul, South Korea to confirm your proposal for setting up an integrated steel plant in the land identified jointly by your team and the AP Government at Krishnapatnam and for further discussion on other required support under the State Industrial Policy.”

He mentioned, Krishnapatnam is well poised to be the next industrial growth centre of Andhra Pradesh considering its proximity to the various urban centres like Chennai, Bangalore and is strategically located on the Chennai – Bangalore Industrial Corridor which is being developed with the support of Government of India. “Also, you are aware that developing an integrated steel plant right beside a world-class port offers multiple logistical advantages considering high volume imports and exports arising out of the steel plant operations. Further, Krishnapatnam Port is one of the largest automated ports in South Asia and with a deep draft capable of handling capesize and panamax vessels and I am sure you’d have had appreciated its suitability for an integrated steel plant during your visit to the site. AP would be more than willing to take all necessary steps to hand over the land at the earliest to Posco once we come to a common understanding on the way forward,” he wrote.

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The AP Government envisages that the Steel Plant at Krishnapatnam would be an anchor industry in driving the economic activity in the region and the state would extend all necessary support.

The incentives given in Industrial Policy of AP 2020-23 are available and any specific requests in line with the volume of investment and employment opportunities and subsidiary industrial growth that would be generated, Government of AP would be willing to consider further support in the form of fiscal and non-fiscal incentives.

He said, “The definitive terms can be discussed when your delegation visits AP and I am sure that we will find a common ground on this front.”