The Andhra Pradesh state government has decided to remove leather tanning activity at the proposed Krishnapatnam International Leather Complex (KPILC) to put an end to pollution concerns of neighbouring villagers.
The project is coming up at Kothapatnam village in Kota mandal of Nellore district, in 532 acres at an investment of Rs 281 crore. The leather complex is expected to provide employment to 15,000 people. Government of India gave environment clearance in 2014 itself. Department of industrial policy and promotion cleared the project in 2016. But the project remained a non-starter due to unrelenting agitation by the residents of 10 surrounding villages.
Central government will provide Rs 125 crore grant/funding for the project under the Mega Leather Cluster Scheme. KPILC would draw 10 million litres per day of water from the proposed 30 million litres per day (MLD) desalination plant.
The proposed airport at Dagadarthi seem to have been shelved ostensibly due to high cost of lands in the region and not enough cooperation from owners of nearly 168 private lands to be acquired for the project.
There has been intense speculation that resulted in higher land prices at the airport project surroundings. This has made the task of district officials difficult to complete land acquisition and the government decided to take the extreme step.
You can take a look at the project history by clicking the link below:
Another practical reason for a change in decision seems to be commercial non-viability of the airport project site, being away from the port and many industrial zones that are on the other side of Penna river in the Nellore-Gudur-Naidupeta region.
Consequently, the government machinery is said to be scouting for a new 1200 acre site some where near Krishnapatnam, Sarvepalli and Venkatachalam region.
Chief Minister N Chandrababu Naidu inaugurated the 2640 MW Sembcorp Gayathri Power Complex (SGPC) being setup at an investment of Rs. 20,000 crore near Nellore. The power complex houses two 1,320MW super critical coal-fired power plants; Thermal Powertech Corporation India Ltd (TPCIL) which commenced operations in September 2015 and NCC Power Projects Ltd (NCPPL) which is expected to be fully operational by the end of this year.
Nellore now has 11 power plants generating about 15,550 MW including those from AP Genco, Meenakshi, Simhapuri, Reliance and Kineta. This is the largest capacity of energy generated in a single district. The Sembcorp Gayatri Power Complex alone can meet 40% of the daily energy demand of entire state of Andhra Pradesh.
About 10 to 11 million tonnes of coal from Krishnapatnam port travels the 7-km distance to the plant via conveyor belt and the locals often express environmental and health concerns. Sembcorp CEO Tang Kin Fei, however claims that the plant has been designed according to World Health Organisation standards with minimal emissions and also plans to build a plant to use fly ash coming from the plant to make light weight concrete components and eventually concrete panels and modular housing.
State government has allotted 485 acres of land to International leather complex limited in Nellore. Land was allotted at Kothapatnam village in Kota mandal. Its decided to give the land for the project at the price of Rs 3lakh per acre.
Tata International Leather Products and Fashion Club Global have come forward to set up the units in the state. More than 40 companies have come forward to set up units at Krishnapatnam leather complex. It’s expected that these companies create 15000 jobs and also increase the investments up to Rs2000 crores.
A Japanese industrial cluster is expected to come up between Krishnapatnam and Sri City (near Tada) in the Nellore district of Andhra Pradesh. The Japanese cluster is expected to further catalyze already vibrant industrial scene in Nellore district. The region includes Menakur SEZ, Mambattu SEZ, Pantapalem Industrial Park and Ankulapur Industrial Park of APIIC apart from Sri City SEZ in the private sector.
The Government of India announced that Krishnapatnam will be made an industrial smart city and will be made part of the Chennai-Bengaluru industrial corridor, which is expected to receive substantial Japanese investments.
The AP State Cabinet, headed by Chief Minister Mr.Chandrababu Naidu has approved to allot lands for different Central Government Organizations to set up its base in Nellore district.
Land was approved and allotted for South Central Railways for the new Broad Gauge railway line from Obulavaripalle of Kadapa to Krishnapatnam, Nellore. Land was allocated at different places , 11 acres in Vadlapudi village, 26 acres in Duggunta, and 95 acres in Kasumuru of Nellore district.
72 acres of land was also approved and allotted at Marupuru village of Podalakur in Nellore District to Wing Commander, Chennai for establishment of Radar Station by Indian Air Force (IAF).
Five acres of land was approved and allotted to Indian Coast Guard, Visakhapatnam at Muthukur, Nellore District for construction of communication centre.
These lands were allocated at the market value ranging from Rs.3 lakhs to Rs.22 lakhs per acre.
According to Chairman of the Andhra Pradesh State Industrial Promotion Board (APSIPB), Mr. Naidu cleared the proposal of Universal Coke & Power Limited which is promoted by Shri Ram Ventures Limited which is a part of Shri Ram Group. The company proposes to set up its plant in Nellore district near Krishnapatnam port.
The plant proposes to set up a non-recovery coke pant along with 35MW power plant using the heat generated in the main plant. According to APIIC Chairman P.Krishnaiah, the AP government has decided to allot 175 acres of land for the purpose of this plant. The company is investing Rs 725 crores and will provide 1,525 jobs in the next 18 months.
AP government has requested the center to set up an airport in the region, as many establishments are coming up in Krishnapatnam area. Airport has become necessary at Krishnapatnam area as many industries are interested to invest after the establishment of the port, thermal plants and automobile units. There are many industries that are coming in and around SriCity .
Energy, infrastructure and investment secretary for AP, Mr. Ajay Jain told that they have placed a request to AAI for an airport, as there are several requests from industrialists and foreign delegates visiting the Krishnapatnam area.
Isuzu Motors, the Automobile giant has agreed to build a pick-up truck manufacturing facility at Sri City, Nellore District. Vice president and director Masanori Katayama promised to set up the most modern facility in Sri City compared with 44 units the automaker currently has across the globe. It has also promised to bring several Japanese auto component manufacturers to the state to meet it requirements. The company has begun the construction for a manufacturing facility for production of ut ility vehicles.
Refrigeration compressors producer Mayewaka Manufacturing chairman Yoshiro Tanaka has expressed their interest in setting up cold chains in the proposed mega food parks to make agriculture profitable.
Kubota Corporation, the Agri equipment manufacturer is interested to work with AP in the areas of agri productivity enhancement and farm mechanisation.
Naidu succeeded in getting encouraging response from large Japanese funding institutions Japanese International Cooperation Agency (JICA) and Japan bank for International Cooperation (JIBC) for infrastructure projects in AP. JICA is currently funding the Chennai-Bangalore industrial corridor with Krishnapatnam as one of the nodal points to support industrial nodes and road network connecting all the seaports in the state.
Executive Vice President and Head of Group Business Development and Commercial at Sembcorp Industries Taan Cheng Guan told that there are waiting for approval to increase its 45 percent stake in 1,320-megawatt power plant located in Krishnapatnam in Nellore, AP.
NCC Infrastructure Holding Ltd, jointly with Gayathri Energy Ventures Pvt Ltd, is building the plant which would start operation by end of next year.
After speaking to the government officials, Tan is confident that the approval should come over the next couple of months. He is very postive of increasing the stake, though he did not state as to how much the stake is to be increased to
Sembcorp’s 60 per cent owned first power plant, is expected to commence operation from end of this year.