India: Andhra Pradesh approves INR 3,000 crore My Home Industries cement project

• State approves incentives worth INR 1,129 crore
• Project targets commercial production by March 2029

The Andhra Pradesh government has approved a INR 3,000 crore greenfield cement project by My Home Industries Pvt Ltd. The proposed facility will have 3.5 mnt/year clinker and 3.5 mnt/year cement production capacity, with commercial operations targeted for March 2029.

The total project cost includes INR 2,597 crore of fixed capital investment (FCI), while the remaining amount comprises pre-operative expenses, contingencies and working-capital requirements.

Significant incentive package
The state has approved incentives of up to INR 1,129.36 crore, equivalent to 43.48% of FCI, subject to the company meeting the prescribed investment conditions.

The package includes a capital subsidy of 39% of eligible FCI, capped at INR 943.02 crore, to be disbursed over 10 years from commercial production. The company will also receive power tariff reimbursement of INR 1/unit for 10 years, capped at INR 186.34 crore, for electricity procured from DISCOMs.

The project is expected to generate around 2,000 direct employment opportunities.

Land and infrastructure support
The government has approved the allotment of 27.19 acres of government land through Andhra Pradesh Industrial Infrastructure Corporation (APIIC) for project-related infrastructure, including highway connectivity, belt conveyors and a solar power plant.

The project also requires realignment of the Nagarjuna Sagar Project Canal (NSP) canal passing through approximately 9.93 acres, with the company bearing the associated cost. Land belonging to two temples falling within the proposed mining area may also need to be acquired or exchanged, subject to regulatory approvals and rehabilitation requirements.

Outlook
The project will add 3.5 mnt/year of cement capacity to My Home Industries’ portfolio and strengthen its presence in Andhra Pradesh. The sizeable incentive package could support project economics, while timely completion of land acquisition, mining-related approvals, canal realignment and other clearances will be key to achieving the March 2029 commercial production target.