AM/NS to begin work on mega steel plant tomorrow
Amaravati: Arcelor Mittal Nippon Steel India is set to break ground on Monday for a 17.8 million tonne per annum (mtpa) greenfield integrated steel plant in Andhra Pradesh, in what ranks among the largest industrial investments in India’s metals sector.
The foundation ceremony will be led by Chief Minister N Chandrababu Naidu, alongside Union Steel and Heavy Industries Minister H D Kumaraswamy and industry leaders. Planned at Rajayyapeta in Anakapalli district, the project entails an investment of Rs 1,35,964 crore (around US$ 14.5 billion) and will be executed over 5,465 acres in two phases. The first phase will deliver 7.3 mtpa capacity, followed by an expansion to 10.5 mtpa, taking the total installed capacity to 17.8 mtpa. The project is expected to generate around 100,000 direct and indirect jobs, reinforcing Andhra Pradesh’s positioning as a manufacturing and heavy industry hub. In a parallel move, AMNS India will develop a captive port with 50 mtpa handling capacity over 316 acres, with an outlay of Rs 11,198 crore. The port is expected to create an additional 6,000 jobs while ensuring supply chain control over raw materials and exports, a critical factor in large-scale steel operations. The integrated steel-and-port ecosystem is likely to enhance cost efficiencies and global competitiveness, particularly as India scales up infrastructure-led demand. The Andhra project significantly expands AMNS India’s footprint in a market where steel consumption is projected to grow steadily over the next decade. The facility will strengthen the company’s ability to serve construction, infrastructure, automotive, and manufacturing sectors. It also positions the Visakhapatnam economic region as a high-value industrial cluster, with downstream industries expected to follow anchor investments of this scale.
The Andhra Pradesh government has committed to accelerated infrastructure enablement, including four-lane connectivity to NH-16, and assured provision of power, water, and industrial requirements to support execution timelines.
The ground-breaking event will see participation from key policymakers and corporate leadership, including Union Steel and Heavy Industries Minister H D Kumaraswamy, Deputy Chief Minister Pawan Kalyan, and industry leaders such as Lakshmi Mittal and Aditya Mittal.
The project highlights a broader shift toward mega-scale, integrated industrial investments in India, with Andhra Pradesh emerging as a preferred destination for global capital in heavy manufacturing.
