The government has announced major incentives for the Greenfield cement plant that My Home Industries is set to establish in Dachepalli Mandal of Palnadu district, Andhra Pradesh. While the company is investing Rs. 3,000 crore, the government will provide incentives of up to Rs. 1,129.36 crore to the company in the form of capital subsidy and power tariff reimbursement. These details were mentioned in the Government Order issued on Friday. The proposed unit is expected to provide employment opportunities to 2,000 people. The company will be eligible for incentives of up to 43.48 percent of its Fixed Capital Investment. For this, the company has to complete the unit by March 2029. These incentives are being provided subject to the condition that the plant is completed with a Fixed Capital Investment (FCI) of Rs. 2,597 crore within this period. The GO stated that under the ‘Andhra Pradesh Industrial Development Policy (4.0) 2024-29’, incentives of up to 43.48 percent of FCI, limited to a maximum of Rs. 1,129.36 crore, will be provided.
The details are as follows: A capital subsidy of 39 percent of eligible Fixed Capital Investment (eFCI), limited to Rs. 943.02 crore, will be provided. This amount will be disbursed in installments over a period of 10 years from the Date of Commercial Production (DCP). With regard to power tariff reimbursement, the government will reimburse Rs. 1 per unit for electricity purchased from electricity distribution companies (DISCOMs) for a period of 10 years from the Date of Commercial Production. The maximum limit of this incentive will be Rs. 186.34 crore. In addition to these, another concession has also been provided to My Home Industries. It has been stated that if the company provides employment to 2,000 people as committed by March 2029, it will be eligible for an additional incentive of 2 percent of FCI under the capital subsidy, equivalent to 2.15 percent of eligible Fixed Capital Investment. However, it has been stated that this additional incentive will be granted subject to the applicable policy guidelines and verification by the concerned authority.
In addition to these incentives, the government has approved the allotment of 27.19 acres of government land to the company through the Andhra Pradesh Industrial Infrastructure Corporation (APIIC), on actual cost basis and as per the prevailing rules, for establishing the proposed cement project. Of this, 21.13 acres are for highway connectivity, belt conveyor facilities and a solar power plant, while another 6.06 acres fall within the project area. In addition, the government has approved the transfer of lands belonging to Sri Seetharama Swamy Temple and Sri Venugopala Swamy Temple that fall within the proposed mining area. The orders stated that these lands have to be transferred either by permitting their acquisition upon payment of market value along with other applicable charges or by providing suitable alternative lands in exchange. The government has directed the concerned departments to ensure that the consent of the local people is obtained while identifying the alternative land and that the alternative site is selected only on mutually agreed terms.