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Andhra Pradesh has taken a major step toward industrial growth with the foundation of a INR 1.36 lakh crore steel plant by ArcelorMittal Nippon Steel India in Anakapalli district. Planned in two phases with a total capacity of 17.8 million tonnes per annum, the project is expected to generate around one lakh jobs. A captive port and supporting infrastructure are also part of the plan. The state government sees this as a key move to strengthen its manufacturing base, improve logistics, and position Andhra Pradesh as a leading steel and industrial hub in India.
The Andhra Pradesh government has initiated a large-scale industrial project with the foundation of an integrated steel plant in Nakkapalli mandal of Anakapalli district. The project, being developed by ArcelorMittal Nippon Steel India, involves an investment of INR 1.36 lakh crore and will be spread over 5,465 acres. Advertisement
The plant will be developed in two phases with a total capacity of 17.8 million tonnes per annum. The first phase will have a capacity of 7.3 million tonnes per annum, while the second phase will add 10.5 million tonnes. Once completed, the project is expected to generate around one lakh direct and indirect jobs, making it one of the largest employment-generating industrial investments in the state.
Chief Minister N. Chandrababu Naidu stated that the project represents the beginning of a larger industrial ecosystem rather than just a single plant. He indicated that construction activities will gain pace soon and confirmed that cold rolled steel production is expected to begin by December 2028. The first blast furnace is planned to be operational by June 2030, followed by the second by December the same year, completing the first phase.
Along with the steel plant, the company will develop a captive port with a capacity of 50 million tonnes on 316 acres, with an additional investment of INR 11,198 crore. This port is expected to generate around 6,000 jobs and will be directly linked to the plant to ensure efficient movement of raw materials and finished steel.
To support the project, the state government has taken up infrastructure development, including a four-lane road extension connecting the plant to National Highway 16. The project is also expected to work alongside existing facilities such as Rashtriya Ispat Nigam Limited (Vizag Steel Plant), which could strengthen the overall steel production capacity of the state.
Naidu acknowledged the role of central government initiatives like Make in India and Atmanirbhar Bharat in attracting such investments. He also noted that the state has secured investments worth INR 20.3 lakh crore over the past 20 months and aims to create 22 lakh jobs in the next three years.
He further highlighted that Visakhapatnam is expected to see significant development, with plans to position it as a global city. The state is also witnessing interest from companies like Google and Reliance Industries for data centre projects. Additional plans include developing an aluminium cluster and positioning North Andhra as a rare earth hub. The Bhogapuram Airport is expected to be inaugurated in August, which will improve connectivity in the region.
From the company's side, Lakshmi Niwas Mittal said that the project marks a significant step in building a world-class steel manufacturing facility in India. He added that the company has had a long-term vision to establish such a plant in the country and sees strong future demand for high-quality domestic steel as India continues to grow.
Aditya Mittal stated that the company already has an established presence in Andhra Pradesh, including an 11-million tonne pellet plant in Visakhapatnam and renewable energy operations in Kurnool. He explained that existing infrastructure, including a slurry pipeline connected to iron ore regions, will be extended to the new plant site to speed up development. He also mentioned that the company has signed agreements with the state to build a skilled workforce, including plans to set up a metallurgical institute in Visakhapatnam.
The company also considers the project location strategically important, as it can support cost-efficient steel production and improve competitiveness. The plant is expected to produce advanced and value-added steel, contributing to India's long-term goal of increasing domestic steel capacity.
Source PTI
FAQ
Q1: What is the new steel plant project announced in Andhra Pradesh?
The Andhra Pradesh government has laid the foundation for a mega integrated steel plant in Anakapalli district. The project, being developed by ArcelorMittal Nippon Steel India, involves an investment of around INR 1.36 lakh crore and is one of the largest industrial projects in the state.
Q2: What will be the production capacity of the steel plant?
The plant will be developed in two phases with a total capacity of 17.8 million tonnes per annum. The first phase will have a capacity of 7.3 million tonnes, while the second phase will add another 10.5 million tonnes.
Q3: How many jobs is the project expected to generate?
The project is expected to create around one lakh direct and indirect jobs. In addition, the captive port and related infrastructure are likely to generate further employment opportunities in the region.
Q4: What supporting infrastructure is planned along with the steel plant?
The project includes the development of a captive port with a capacity of 50 million tonnes, along with road connectivity such as a four-lane link to National Highway 16. These developments will support efficient logistics and movement of raw materials and finished products.
Q5: What is the expected timeline for the project?
Cold rolled steel production is expected to begin by December 2028. The first blast furnace is planned to be operational by June 2030, followed by the second by December 2030, completing the first phase of the project.
Q6: How will this project impact Andhra Pradesh's industrial growth?
The project is expected to strengthen the state's manufacturing base, improve logistics, and create a larger industrial ecosystem. It will also support existing facilities like Vizag Steel Plant and help position the state as a major steel and industrial hub.
Q7: What makes the project strategically important for the company?
The location offers advantages such as existing infrastructure, access to raw materials, and connectivity through ports. The plant will focus on producing advanced and value-added steel, supporting long-term demand and improving competitiveness in the steel sector.
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