VISAKHAPATNAM: Chief Minister N Chandrababu Naidu laid the foundation-stone for the ArcelorMittal Nippon Steel India (AM/NS India) integrated steel plant at Rajayyapeta in Anakapalle district on Monday.
The project, with an investment of Rs 1.36 lakh crore, is the largest in the State’s steel sector and is expected to generate around one lakh direct and indirect jobs.
The greenfield steel plant, being developed in two phases, will have an annual production capacity of 17.8 million tonnes. A captive port with an investment of Rs 11,198 crore will also be built, creating an additional 6,000 jobs.
The plant will be connected to National Highway 16, where a four-lane expansion is underway.
The first phase of the mega integrated steel project, with a huge capacity of 8.2 million tonnes per annum as per Environment Clearance, will require an investment of over Rs 70,000 crore and is expected to commence production by 2028.
By June 2030, the first blast furnace will be operational, followed by the second blast furnace in December.
Speaking on the occasion, Chief Minister N Chandrababu Naidu said, “Within just 20 months, we have successfully laid the foundation-stone for the ArcelorMittal-Nippon Steel plant under the ‘Speed of Doing Business’ policy.
This massive industry will provide direct and indirect employment to lakhs of youth. I congratulate Aditya Mittal and Minister Nara Lokesh for their efforts in making this project a reality. My sincere thanks to all the farmers who have contributed their land.”
He said, “Alongside the steel plant, a Steel City and a captive port are being constructed. By June 2030, the first blast furnace will be operational, followed by the second in December. A four-lane road connecting the plant to the national highway and a slurry pipeline for raw iron supply are also planned.”
He added, “This project will transform the region through steel production and stimulate education, healthcare, and employment. Andhra Pradesh is the most investment-friendly State in India, offering unmatched opportunities from tourism to manufacturing. The ArcelorMittal project is a prime example of what can be achieved through vision, industry-friendly policies, and rapid approvals.”
Union Minister of Steel and Heavy Industries HD Kumaraswamy said, “As India, the second largest crude steel producer in the world, advances towards its long-term steel capacity goals under Viksit Bharat 2047, projects of this scale will require sustained investment, advanced technologies, and strong execution capabilities.’’
This collaboration Deputy Chief Minister Pawan Kalyan, speaking about the plant’s environmental standards, said, “It is a matter of great joy that the largest integrated green steel plant in the country is being set up in North Andhra.
With an investment of Rs 1.35 lakh crore, this 17.8 million tonne industry will be environmentally friendly and constructed with extremely low emissions.
I commend the leadership and vision of Chief Minister Chandrababu Naidu in attracting such large-scale investment and creating a climate of trust for industrialists in the State.” Minister Nara Lokesh said, “Today is not merely the laying of a foundation stone; it is an example of trust and confidence among industrialists.
Before 2019, I personally approached Aditya Mittal to set up a plant in Andhra Pradesh. In 2024, the coalition government returned, and the process began.
Through just a 30-minute video call, the largest steel industry in the country decided to invest here. Land and approvals were granted rapidly under the ‘Speed of Doing Business’ approach, demonstrating the capacity of Andhra Pradesh to attract industries and ensure their realisation.”
Aditya Mittal said, “I would like to thank the Government of AP and the GoI for their steadfast support in bringing this project to life. Its coastal location and access to the richest iron-ore belt through our slurry pipeline make it an ideal site. .”
Lakshmi Mittal described it as a significant chapter in ArcelorMittal’s partnership with India.
ArcelorMittal Nippon Steel India has also signed two landmark Memorandums of Understanding (MoUs) with the Government of Andhra Pradesh. The purpose of the MoUs is for ArcelorMittal Nippon Steel India to build, along with the New Age Makers’ Institute of Technology (NAMTECH), a future-ready industrial talent ecosystem in Andhra Pradesh by connecting advanced technology, materials innovation, education, and workforce development.
The event was attended by Union Steel Minister HD Kumaraswamy, Union Heavy Industries Minister for State Bhupathi Raju Srinivasa Varma, Executive Chairman of ArcelorMittal Lakshmi Mittal, Aditya Mittal, Chairman of AM/NS India.