The Hindu : Andhra Pradesh News : Rules relaxed in A.P. to benefit integrated steel plants

Online edition of India's National Newspaper
Thursday, Aug 02, 2007
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Andhra Pradesh

Andhra Pradesh

Rules relaxed in A.P. to benefit integrated steel plants

Special Correspondent

HYDERABAD: Even the controversy continues over the establishment of Bramhani Steels in Kadapa district, the State Government has decided to relax rules to allow incentives under its industrial policy for integrated steel plants and ferro-alloy units that use blast furnace or direct reduction technology.

As the Bramhani Steels being promoted by Karnataka MLC G. Janardhan Reddy also proposes to use blast furnace technology, it will be entitled to the incentives, including tax holiday and concession in power and water tariff for a specified period. This decision was taken by the Cabinet at its meeting here on Wednesday.

Briefing reporters, Information Minister A. Ramanarayan Reddy explained that power consumption by steel plants using either of the two technologies was minimum. Moreover, such steel plants normally had their own captive power units.

The Minister said that the Cabinet also resolved to extend incentives to greenfield steel plants using any of the two technologies. Under the industrial policy for 2005-2010, some categories of plants in the steel industry that consumed heavy power and provided employment potential, were ineligible for the incentives.

The Cabinet also resolved to promulgate an ordinance to amend the Land Acquisition Act by replacing the words “district collector” in the relevant part by “collector” to facilitate quicker land acquisition for irrigation projects and the massive housing programme. This change was proposed as special collectors were being entrusted with the responsibility.

Lands to firms

The Cabinet approved allotment of 75 acres to Tata Consultancy Services (TCS) and 40 acres to Cognizant Technologies in the APIIC’s industrial layout at Adibhatla near here at the rate of Rs 40 lakh an acre. The Minister justified the allotment saying it was in line with the MoUs signed with the companies earlier. The TCS would invest Rs. 400 crore on the facility providing employment to 5,000 people by 2013 and Cognizant Rs 330 crore by 2012.

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