AP invites POSCO for setting up steel plant at Krishnapatnam

VIJAYAWADA: The AP government has invited POSCO India Private Limited, the Indian subsidiary of the Korean conglomerate POSCO, to establish a greenfield integrated steel plant at Krishnapatnam in the Nellore district.

In a letter addressed to Sung Lae. Chun, Chairman and Managing Director of POSCO India, special chief secretary, R. Karikal Valaven said the government is keen on having the unit at Krishnapatnam while pointing to the interest expressed by the firm on the location.

The government move gained significance in the backdrop of growing resentment over Centre’s disinvestment plans of Vizag Steel Plant (VSP).

The letter is seen as an attempt by the state government to divert the plant to Krishnapatnam and safeguard the interests of VSP and its workers.

In his letter, Valaven said, “I would like to highlight the fact that the government of AP has been a front-runner in providing unparalleled support to the industry and the 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 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 headquarters at Seoul to confirm your proposal for setting up an integrated steel plant in the land identified jointly by your team and the Government of AP at Krishnapatnam and for further discussion on other required support under the State Industrial Policy.”

The official pointed out that Krishnapatnam is poised to be the next industrial growth centre of Andhra Pradesh considering that it is strategically located on the Chennai-Bengaluru Industrial Corridor, which is being developed with the support of the Centre.

He also said developing an integrated steel plant beside a world-class port offers multiple logistical advantages.

Reminding that Krishnapatnam port is one of the largest automated ports in South Asia with a facility to handle Capesize and Panamax vessels, he said the state government would take all steps to hand over the land at the earliest to POSCO once a common understanding is achieved on the way forward.

Valaven envisaged that the steel plant at Krishnapatnam would be an anchor industry in driving the economic activity in the region.

AP would be willing to consider further support in the form of fiscal and non-fiscal incentives, he said.