The Andhra Pradesh government has approved the allocation 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 Murranahalli village, Madakasira, Andhra Pradesh. According to Informist, the state government issued an order to this effect on Tuesday.
As per the document, Kalyani Strategic Systems will set up a defence energetics facility with an ammunition filling complex and a gun propellant complex. The location is close to Bengaluru and is strategically situated to develop a manufacturing ecosystem for defence companies, a senior official of the state industry department said. The company has committed to invest Rs 2,400 crore in the facility in two phases, the official said.
While Kalyani Strategic submitted its proposal on November 8, the state investment promotion board approved it on November 16, and the state government approved the same on Tuesday.
The state government also assured the company of allocating an additional 500 acres of land as and when required for its expansion. Kalyani Strategic has also proposed the future expansion of the facility into missiles, warheads, and energetics in the defence sector. Besides the allocation of land, the state government has offered various incentives such as subsidised power, water, and basic infrastructure around the facility, along with applicable tax incentives.
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 a price of Rs 1,948 per square meter for the land, the company said in an exchange filing.
