The Andhra Pradesh government has unveiled a comprehensive special incentive package valued at up to ₹28,000 crore to facilitate the establishment of the Kadapa integrated steel plant by JSW Group in Sunnapurallapalle, YSR Kadapa district. The plant, to be built across 1,100 acres allotted at a concessional rate of ₹5 lakh per acre, is slated for phased investment totaling ₹16,350 crore—₹4,500 crore in phase one and ₹11,850 crore in phase two. Production is expected to begin by April 2029. D
Under this policy-driven package, JSW will receive stamp duty and registration waivers, 100% reimbursement on state GST and sales tax, and exemptions on electricity duty for 15 years. Additionally, power will be supplied at a subsidized rate of ₹1 per unit, and industrial water will be charged at ₹50 per kilolitre for 10 years.
These incentives are tied to strict conditions—namely deadlines, investment milestones, and local employment targets—with phase one scheduled to commence by January 2026 and full operational rollout by April 2029, while phase two is expected to begin in January 2031, reaching full-scale output by April 2034
The project is expected to generate significant direct and indirect employment—estimated at around 2,500 positions in phase one—and bolster economic and industrial development in Rayalaseema. It aligns with AP’s broader industrial thrust under its Industrial Development Policy, aimed at accelerating regions like Kadapa into steel and manufacturing hubs.
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