AMNS India to receive $3.3 billion in incentives from Andhra Pradesh

Indian steelmaker ArcelorMittal Nippon Steel (AMNS) will receive incentives of up to Rs 28,000 crore ($3.3 billion) from the Andhra Pradesh government for the first phase of construction of an integrated steel mill that the steelmaker intends to build in the region. The Economic Times reports, citing sources.

The company has begun land acquisition procedures in Anakapalli district, where it plans to build a new facility with an initial production capacity of 7.3 million tons.

The incentive package is designed to be distributed over 20 years, depending on AMNS achieving specific project milestones related to investment, job creation, and timely execution.

The benefits include stamp duty and registration fees exemption for land purchases, a 15-year exemption from electricity tax, and full refunds of net state goods and services tax (SGST) and sales tax.

In addition, there is a subsidy on electricity of one rupee per kWh for 15 years and industrial water supply at a subsidized price of 50 rupee per kiloliter for ten years.

AMNS’s total investment in the steel plant in the first phase is estimated at Rs 56 thousand crore ($6.55 billion), with the project scheduled to be completed in January 2029. Earlier it was reported that the plant would require a total investment of INR1.4 trillion ($16.6 billion), with the second phase expected to add another 10.5 million tons per year.

As GMK Center reported earlier, AMNS India is building the world’s largest standalone integrated steel plant in Hazira, Gujarat. It will have a capacity to produce 24 million tons of steel per year and is scheduled to be completed by 2029.