The Government of Andhra Pradesh has approved the allotment of 1,000 acres of land to Kalyani Strategic Systems Ltd., a wholly owned subsidiary of Bharat Forge Ltd., at a cost of Rs.7 lakh per acre at Muranahalli village, Madaksira, Andhra Pradesh. According to Informist, the state government issued an order in this regard on Tuesday.
According to the document, Kalyani Strategic Systems will set up a defense energetics facility with an ammunition loading complex and a gun propellant complex. A senior official of the state industries department said the location is close to Bengaluru and is strategically located to develop a manufacturing ecosystem for defense companies. The company has committed to invest Rs 2,400 crore in the facility in two phases, the official said.
While the Kalyani Strategy submitted its proposal on November 8, the State Investment Promotion Board approved it on November 16, and the state government approved it on Tuesday.
The state government has also assured to allot 500 acres of additional land to the company if needed for its expansion. The Kalyani Strategy also proposes future expansion of the facility in missiles, warheads and energetics in the defense sector. Apart from allotment of land, the state government has offered various concessions such as subsidized power, water and infrastructure around the facility along with applicable tax concessions.
The state has also allotted 116.62 acres of land to PCBL Ltd in a special economic zone in Nellore district to set up a plant to manufacture rubber black and value-added chemicals at an estimated investment of Rs 3,718 crore. PCBL will pay Rs 1,948 per square meter for the land, the company said in an exchange filing.
