metro india news  I AMARAVATI

In a significant move aimed at bolstering industrial development and job creation, the Andhra Pradesh state cabinet, led by Chief Minister N. Chandrababu Naidu, convened on Thursday has approved several crucial decisions spanning multiple sectors.

One of the key decisions made in the cabinet meeting was the approval of a massive steel plant by ArcelorMittal Nippon Steel India Limited (AM/NSL), entailing an investment of Rs.1.35 lakh crore to establish a 17.8 million metric ton capacity steel plant in two phases. In Phase 1, the company will invest Rs.55,964 crore to set up a 7.3 million metric ton steel plant by January 2029, generating approximately 20,000 jobs. In Phase 2, with an investment of Rs.80,000 crore, the plant’s capacity will be increased by 10.5 million metric tons by 2033, creating another 35,000 jobs.

To support the steel plant, the government has approved the establishment of a captive port at D.L. Puram, Anakapalli district, with an investment of Rs.5,816 crore for the first phase and Rs.5,380 crore for the second phase, is expected to create 6,000 jobs. The cabinet also made amendments to the Kakinada Gateway Port Limited (KGPL) concession agreement, aligning with the Indian Ports Act, 1908, to facilitate this new port.

In a related decision, the government has agreed to convert Rs.2,400 crore in electricity dues of the Visakhapatnam Steel Plant into equity to ensure its financial sustainability. The plant, which had been struggling financially, has now turned profitable in March 2025. The state government also announced that AP state police would replace central security forces at the plant.

Additionally, the government is keen on developing the coastal economy, with plans to establish new ports and fishing harbors to boost marine trade and employment.

Recognizing the immense potential of the tourism sector, the cabinet approved initiatives to enhance tourism infrastructure and attract more visitors. The bar license fee for 3-star and higher-category hotels has been reduced from Rs.66 lakh to Rs.25 lakh, aiming to create a more business-friendly environment for the hospitality sector. The government has set a target of adding 50,000 hotel rooms in the next five years to accommodate the rising number of tourists.

Furthermore, the promotion of temple tourism has been identified as a key focus area, leveraging the state's rich cultural heritage to attract domestic and international pilgrims. To support arts and culture, the government ratified the Ugadi Puraskaralu under G.O.Rt No.56, 65, and 68, reaffirming its commitment to promoting traditional art forms and cultural heritage.

The cabinet has taken significant steps to strengthen the energy sector, where an approval was granted for the Rs.710 crore loan guarantee provided by the government to AP Power Finance Corporation through HUDCO, previously issued under G.O. Ms. No.35. The cabinet endorsed the arbitration award for the Polavaram Hydro Electric Project, ensuring compensation of Rs.742 crore to M/s NECL and Rs.986.17 crore to APGENCO, amounting to a total of Rs.1,735.35 crore.

The cabinet reviewed an additional Rs.44.6 crore funding request for the Chintalapudi Lift Irrigation Scheme and directed officials to conduct a thorough evaluation. To optimize the use of Godavari River floodwaters, the government approved the formation of a Special Purpose Vehicle (SPV) named 'Jala Harathi Corporation' to implement the Polavaram-Banakacharla Link Project. The estimated cost of this major initiative is Rs.80,000 crore, with a specific focus on enhancing water supply to the Rayalaseema region.

As part of a new governance initiative, IAS officers will stay in villages for three days and two nights to monitor welfare scheme implementation and assess grassroots issues. The Chief Minister stressed the importance of enhanced public communication efforts, noting that Andhra Pradesh offers significantly more welfare schemes than neighboring states. Also, a new accreditation policy for journalists is under review to improve transparency and credibility in government-media relations.

During the meeting, the Chief Minister emphasized the importance of effective execution of policies and ensuring that government initiatives reach the people efficiently. He also pointed out that Andhra Pradesh is implementing four times more welfare schemes compared to some neighboring states. The cabinet discussed the Rushikonda Hill development project, particularly the buildings constructed under the previous administration. A ministerial team will visit the site before making a final decision on their future utilization.