Published Mar 13, 2026 | 2:15 PM ⚊ Updated Mar 13, 2026 | 2:15 PM
Chief Minister N Chandrababu Naidu said the project will be developed in two phases over nearly 5,300 acres in Anakapalli.
Synopsis: The total estimated investment in the project is around ₹1.50 lakh crore, making it the biggest industrial project ever to come up in the state. In the first phase alone, works worth about ₹80,000 crore will be launched. The first phase is expected to be completed by 2029 and will target an annual production capacity of around 8.2 million tonnes of steel.
Preparations are underway for setting up a massive integrated greenfield steel plant in Andhra Pradesh. The plant is expected to significantly transform the state’s industrial landscape.
The project, coming up in Nakkapalli mandal of Anakapalli district, will be taken up by ArcelorMittal Nippon Steel India (AMNSI) with an investment exceeding ₹1.35 lakh crore.
Union Minister of State for Steel and Heavy Industries Bhupatiraju Srinivasa Varma announced that the groundbreaking ceremony for the project will be held at 4 pm on 23 March.
Speaking to reporters at Bhimavaram in West Godavari district on Thursday, 12 March, the minister said the project would be one of the largest industrial investments in the history of Andhra Pradesh.
“The integrated greenfield steel plant will change the industrial profile of the state. All arrangements are in place for the foundation ceremony,” Varma said.
The total estimated investment in the project is around ₹1.50 lakh crore, making it the biggest industrial project ever to come up in the state. In the first phase alone, works worth about ₹80,000 crore will be launched. The first phase is expected to be completed by 2029 and will target an annual production capacity of around 8.2 million tonnes of steel.
Under the supervision of Roads and Buildings Department officials, helipads are being prepared at the venue. The foundation ceremony and public meeting are likely to be held at the same location where earlier public consultations and distribution of house site pattas were conducted in the area.
The district authorities are making elaborate arrangements. with speculation that Prime Minister Narendra Modi and Chief Minister N Chandrababu Naidu may attend the event.
The project is also expected to generate substantial employment. “During the first phase itself, nearly 30,000 people will benefit through direct and indirect employment opportunities,” the minister said.
Chief Minister Naidu also confirmed that the foundation stone for the integrated steel plant will be laid on 23 March. Addressing a recent collectors’ conference, he said the project will be developed in two phases over nearly 5,300 acres in Nakkapalli mandal of the Anakapalli district.
As part of the first phase, more than 2,000 acres have already been allocated and demarcated for the project. Authorities have completed the process of identifying boundaries and compensating residents whose houses were located within the project area.
The displaced families have been provided compensation and rehabilitation packages, following which the structures on the project site were cleared.
According to sources, the state government has also taken up major infrastructure works to support the upcoming industrial complex. A wide access road is being built from the national highway into the project site to facilitate construction activities and the future movement of raw materials and finished products. The road, which will also serve the proposed bulk drug park in the region, is nearing completion.
According to official sources, the progress of preparatory works has enabled the government to go ahead with the formal launch of the project later this month. Earlier, ArcelorMittal Nippon Steel India had indicated that it was planning to hold the groundbreaking ceremony in early March. However, the state government has now finalised 23 March as the official date for the event.
The mega steel plant will have a capacity of 17.8 million tonnes per annum (MTPA). In the first phase, the plant will have a capacity of 7.3 MTPA, while the second phase will add another 10.5 MTPA.
The project is expected to create massive employment opportunities in the region. Officials estimate that about 20,000 jobs will be generated during the first phase alone. Once the second phase is completed, the total employment potential could increase to around 35,000 jobs.
For Phase I, approximately 2,200 acres will be allotted to the company at a rate of ₹51.39 lakh per acre. In addition, around 440 acres have been earmarked for the development of a township to support the workforce and related facilities.
The government has also given in-principle approval for allocating land for a captive port at DL Puram in Anakapalli. The proposed port will have a waterfront length of about 2.9 kilometres and will be designed to handle a cargo capacity of 20 to 25 million metric tonnes per annum. The port project itself is expected to attract an additional investment of about $350 million to $450 million.
The captive port will play a crucial role in ensuring efficient logistics for the steel plant by facilitating the import of raw materials such as iron ore and coal and the export of finished steel products.
The project is being supported by a special package of incentives under the Andhra Pradesh Industrial Development Policy 4.0 (2024–29). These incentives include exemption from stamp duty and registration charges, supply of industrial water at ₹50 per kilolitre for 10 years, and exemption from electricity duty for 15 years.
The state government has also promised 100 percent net SGST reimbursement during construction and sales for a period of 15 years. In addition, the company will receive power reimbursement of ₹1 per unit for 15 years.
(Edited by Majnu Babu).
