Andhra Govt Allots 1,000 acres for Defence Unit

02 Dec 2024 CW Team

The Andhra Pradesh government announced the approval of allocating 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 in Murranahalli village, Madakasira, Andhra Pradesh. According to a document, Kalyani Strategic Systems was said to be planning the establishment of a defence energetics facility that would include an ammunition filling complex and a gun propellant complex. A senior official from the state industry department remarked that the location’s proximity to Bengaluru made it strategically suitable for fostering a defence manufacturing ecosystem. The official further stated that the company had committed to investing Rs 240 billion in the project in two phases.

It was reported that Kalyani Strategic had submitted its proposal on 8th November, following which the state investment promotion board approved it on 16th November, with the state government granting its approval on Tuesday. The government also assured the company of an additional 500 acres of land for expansion, if required. Moreover, Kalyani Strategic proposed expanding the facility in the future to include missile, warhead, and energetics manufacturing in the defence sector. Alongside the land allocation, the government was said to have offered several incentives, including subsidised power, water, infrastructure development, and applicable tax benefits. Additionally, the state government allocated 116.62 acres of land to PCBL Ltd. in a Special Economic Zone in Nellore district. The company reportedly planned to set up a plant for manufacturing rubber black and value-added chemicals, with an estimated investment of Rs 7.18 billion. PCBL was to pay Rs 1,948 per square metre for the land, as disclosed in an exchange filing.

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