Govt okays Rs 1,500 cr capital subsidy, 400 acres
In Short
Under the package, up to 400 acres will be made available on lease for 30 years, extendable under applicable guidelines.
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AP Government
Amaravati: The State government has approved a tailor-made incentive package for Goa Shipyard Limited (GSL) to establish an Rs 8,000-crore shipbuilding and ship-repair facility at Machilipatnam Port, a project expected to create about 8,000 jobs and anchor a wider maritime manufacturing ecosystem.
The project, approved by the State Investment Promotion Board (SIPB), envisages 3,000 direct and 5,000 indirect employment opportunities. The government has directed the Andhra Pradesh Maritime Board (APMB) to facilitate land allotment, infrastructure and regulatory clearances and develop an ancillary cluster around the shipyard.
Under the package, up to 400 acres will be made available on lease for 30 years, extendable under applicable guidelines. Lease rental will be fixed at 2 per cent of the fair market value with a 5 per cent annual escalation. The package includes 19 acres of waterfront land with a 50 per cent premium and a five-year moratorium.
The State will provide a capital investment subsidy of 20 per cent of the project cost, capped at Rs 1,500 crore, to be disbursed over 10 years after commercial production. Other incentives include a de-carbonisation subsidy, Rs 1 per unit power tariff reimbursement for 20 years and 100 per cent exemption from electricity duty for 20 years.
Industrial water will be supplied at a concessional Rs 60 per kilolitre for 20 years. The government will also reimburse 100 per cent of stamp duty and registration charges on a one-time basis.
For the project, 198 acres of Parcel-I land will be transferred from MPDCL to APMB for allotment to GSL, while another 195 acres will be allotted after completion of the ongoing land acquisition process.
The government will facilitate road connectivity, power and industrial water supply and undertake capital and maintenance dredging of the common approach channel to a minimum depth of about 10 metres, subject to applicable rules. The government said the project is intended to strengthen Andhra Pradesh’s position in shipbuilding and promote ancillary industries around Machilipatnam Port.
