Santosh Patnaik Visakhapatnam

Ina shot in the arm to develop an industrial zone near the upcoming Mulapeta Port in Srikakulam district, Coromandel International Limited has come forward to establish a phosphoric acid and associated fertilizer value-chain manufacturing complex with a proposed investment of Rs2,250 crore.

After following due process for approving the project, the State Government has issued orders to allot 450 acres sought by the project proponent under the land acquisition for others policy on actual cost basis.

Mulapeta Port is being developed under the aegis of Andhra Pradesh Maritime Board (APMB) at a cost of Rs4,362 crore to boost regional trade and commerce. It is designed to have a capacity to handle 23.5 million tonnes. A Group of Ministers (GoM) is presently studying the request of Visakhapatnam Port Authority (VPA) to have a strategic stake in the port project by developing an industrial cluster.

The GoM is evaluating the request of VPA to shift some of the dusty cargoes to Mulapeta to ease congestion and reduce pollution. Visakhapatnam has formally submitted a proposal to acquire 49 to 50 per cent equity as a joint venture partner. The GoM is studying various terms, berth allocation right of first refusal (RoFR) so as to place it before the State Cabinet soon for consideration.

Industries and Commerce Secretary N Yuvaraj said in a GO issued on Thursday that after careful consideration of the decision of the State Investment Promotion Board (SIPB), the government accorded approval for allotment of 450 acres of land to Coromandel International Limited at Mulapeta for setting up of a phosphoric acid and associated fertilizer value-chain manufacturing complex.

The government also approved the request of Coromandel International Limited to consider the project implementation timeline from the date of receipt of all statutory approvals, in view of the project's dependence on imported raw materials and the associated supply-chain and geo-political risks, subject to the company submitting the applications for statutory approvals within 4-6 months from the date of allotment.

The Vice Chairman & Managing Director, APIIC Ltd., the Director of Industries and the District Collector, Srikakulam have been directed to take necessary action in the matter, accordingly. Coromandel International Limited has also been told clearly to register themselves and their vendors and suppliers in Andhra Pradesh as GST is a destination-based tax where revenue flows to the State where goods or services are consumed and registration in the State ensures the correct State Government receives its share of the tax.