ArcelorMittal–Nippon Steel plant to surpass VSP capacity in phase 1

Bhimavaram: Union Minister of State for Steel and Heavy Industries Bhupathiraju Srinivasa Varma has declared that the foundation laying ceremony for the integrated greenfield steel plant being established by ArcelorMittal Nippon Steel India will be held on March 23rd at Rajayyapeta in Nakkapalli mandal of Anakapalli district.

At a media conference in Bhimavaram on Thursday, the Minister said the mega project, estimated to cost Rs 1.5 lakh crore, would be among the largest industrial investments in the history of Andhra Pradesh and is expected to significantly strengthen the State’s industrial base.

The Minister said construction of the steel plant will commence with an initial investment of Rs 80,000 crore in the first phase. The project is expected to be completed by 2029 with an annual steel production capacity of 8.2 million tonnes (MTPA). This capacity will be higher than that of the Visakhapatnam Steel Plant, which currently produces 7.3 MTPA.

Srinivasa Varma stated that the plant will be expanded in later phases to reach a capacity of 18.7 MTPA, making it one of the largest steel manufacturing facilities in the country.

The Minister said the project is likely to create employment opportunities for nearly 30,000 people, considering direct and indirect jobs, during the first phase itself. He noted that approvals for the project were obtained within a year through effective coordination between the Union and State governments. The Minister credited Prime Minister Narendra Modi, Union Minister H.D. Kumaraswamy, Chief Minister N. Chandrababu Naidu, Deputy Chief Minister Pawan Kalyan and Minister Nara Lokesh for extending support in facilitating the project.

Highlighting environmental measures, Srinivasa Varma said that 33 per cent of the 2,200-acre land allotted for the project has been earmarked for a green belt, covering more than 700 acres.

To minimize pollution, raw materials will be transported through a 245-km slurry pipeline from Kirandul in Chhattisgarh to Rajayyapeta after receiving approvals from the National Mineral Development Corporation (NMDC).

The plant will require 860 MW of power, of which 220 MW will be generated internally with the remaining being drawn from the grid. Water requirement for the project is estimated at 135 MLD per day, which will be met using water from the Polavaram canal along with recycled water. The Minister reiterated that the Centre aims to achieve a national steel production capacity of 300 million tonnes by 2030, in line with the vision of the Prime Minister. The Minister exulted that during his tenure in the Union Steel Ministry, a Rs 11,500-crore revival package was secured for the Visakhapatnam Steel Plant and another major steel project has now been brought to the state at Nakkapalli.