Andhra Pradesh approves land allocations for defence energetics facility of Bharat Forge Ltd
- In Reports
- 10:11 PM, Nov 28, 2024
- Myind Staff
The Andhra Pradesh government has approved the allocation of 1,000 acres of land to Kalyani Strategic Systems Ltd, a wholly-owned subsidiary of Bharat Forge Ltd, for the establishment of a major defence energetics facility. The land, located in Murranahalli village, Madakasira, will be provided at a subsidised rate of ₹7 lakh per acre, as per an official order issued on Tuesday.
The upcoming facility will include an ammunition filling complex and a gun propellant complex, aiming to bolster the country's defence manufacturing capabilities. Strategically located near Bengaluru, the site is expected to foster the development of a robust manufacturing ecosystem for defence companies.
A senior official from the state industry department revealed that Kalyani Strategic Systems Ltd has committed to an investment of ₹2,400 crore for the project, to be executed in two phases. This initiative aligns with Andhra Pradesh's efforts to attract high-value investments and position itself as a hub for defence manufacturing.
Kalyani Strategic Systems Ltd submitted its proposal for the defence energetics facility on November 8, which received approval from the State Investment Promotion Board on November 16. The state government gave its final nod to the project on Tuesday.
In addition to the initial allocation of 1,000 acres, the government has assured the company of an additional 500 acres of land to support future expansion needs. Kalyani Strategic has outlined plans to expand the facility to include advanced manufacturing capabilities for missiles, warheads, and energetics in the defence sector.
To facilitate the project's success, the Andhra Pradesh government has extended various incentives, including subsidised power, water supply, and essential infrastructure development around the facility. The company will also benefit from applicable tax incentives, reinforcing the state's commitment to creating a favourable environment for defence manufacturing.
The Andhra Pradesh government has approved the allocation of 116.62 acres of land to Phillips Carbon Black Limited (PCBL) within a Special Economic Zone in the Nellore district. The company plans to utilise the land to establish a manufacturing facility for rubber black and value-added chemicals, with an estimated investment of ₹3,718 crore.
As per the agreement, PCBL will purchase the land at a cost of ₹1,948 per square meter. The company disclosed the details of the allocation in a regulatory filing, highlighting the significant potential of the project to contribute to the industrial development of the region.
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