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ArcelorMittal Nippon Steel India begins INR 1.36 lakh crore steel plant project in Anakapalli with phased capacity expansion

#Infrastructure News#Industrial#India#Andhra Pradesh
Last Updated : 24th Mar, 2026
Synopsis

The Andhra Pradesh government has initiated development of a large-scale steel manufacturing facility by ArcelorMittal Nippon Steel India in Nakkapalli mandal, Anakapalli district, with an estimated investment of INR 1.36 lakh crore. The project will be developed over 5,465 acres in two phases, with a total planned capacity of 17.8 million tonnes per annum. The first phase will deliver 7.3 million tonnes, followed by 10.5 million tonnes in the second phase. The project is expected to generate around one lakh direct and indirect jobs. In addition, a captive port with a capacity of 50 million tonnes per annum is planned at an investment of INR 11,198 crore, alongside supporting infrastructure including road connectivity to National Highway 16.

The Andhra Pradesh government has initiated construction of a major steel manufacturing facility by ArcelorMittal Nippon Steel India in the past week, with Chief Minister N Chandrababu Naidu laying the foundation stone for the project in Rajayyapeta village, Nakkapalli mandal, in Anakapalli district. The development marks one of the largest industrial investments in the state, with a proposed outlay of INR 1.36 lakh crore.


The project will be developed as a greenfield steel plant across approximately 5,465 acres and is planned in two phases. Upon completion, the facility will have a total production capacity of 17.8 million tonnes per annum. The first phase is designed to deliver 7.3 million tonnes annually, while the second phase will add a further 10.5 million tonnes, enabling full-scale operations in line with projected demand growth in the domestic steel sector.

According to state government estimates, the project is expected to generate around one lakh direct and indirect employment opportunities, reflecting its scale and associated industrial ecosystem. The development is positioned to contribute to regional economic activity, particularly in the north coastal Andhra Pradesh region.

As part of the integrated infrastructure plan, the company will also develop a captive port with a handling capacity of 50 million tonnes per annum. The port project, planned over 316 acres, involves an investment of approximately INR 11,198 crore and is expected to create an additional 6,000 jobs. The port will support logistics requirements of the steel plant, including movement of raw materials and finished products.

To facilitate connectivity, the state government has initiated the development of a four-lane road linking the project site to National Highway 16. This infrastructure is intended to ensure efficient transportation access and integration with the broader national highway network, supporting both construction and operational phases of the project.

Officials indicated that the state administration will extend support for timely execution of the project, including facilitation of approvals and infrastructure development. The greenfield facility is expected to strengthen India's steel production capacity and contribute to meeting long-term industrial demand.

The project reflects a broader trend of large-scale industrial investments requiring extensive land parcels, logistics infrastructure and connectivity planning. With phased development and associated infrastructure components such as ports and road links, the initiative highlights the interdependence between manufacturing expansion and infrastructure development in emerging industrial corridors.

Source - PTI

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