ArcelorMittal Nippon Steel India (AM/NS India) has initiated construction of a large integrated steel manufacturing facility at Rajayyapeta in Anakapalli district, marking a significant development in India’s industrial expansion. The project, designed with a planned capacity of 8.2 million tonnes per annum as per environmental clearance, represents an investment exceeding ₹70,000 crore to be deployed in phases.
The new plant is expected to create nearly 100,000 employment opportunities, both direct and indirect, as construction progresses and operations scale up. The foundation ceremony was attended by senior leaders from both government and industry. Among those present were Andhra Pradesh Chief Minister N Chandrababu Naidu, Union Minister for Steel and Heavy Industries HD Kumaraswamy, Deputy Chief Minister K Pawan Kalyan, and Nara Lokesh, who oversees IT, Electronics, Communications, Human Resource Development, and Real-Time Governance in the state.
Representing the company were Lakshmi Mittal, Executive Chairman of ArcelorMittal; Aditya Mittal, Chairman of ArcelorMittal Nippon Steel India and Chief Executive Officer of ArcelorMittal; and Dilip Oommen, Chief Executive Officer of ArcelorMittal Nippon Steel India.
The event drew widespread public interest, with large numbers of people from across the state gathering to witness the occasion. The ceremony marked a key step in advancing the company’s plan to develop a next-generation steel manufacturing facility in India.
ArcelorMittal Nippon Steel India has positioned this project as part of its broader contribution to strengthening India’s steel production capacity, in line with the national objective of reaching 300 million tonnes per annum by 2030–31. In parallel with expanding capacity, the company has introduced several first-of-their-kind high-grade steel products in the country and has also become the first integrated steel producer in India to be certified under the government’s Green Steel framework.
Production at the Rajayyapeta facility is expected to begin in the first quarter of 2029, with additional units becoming operational in phases thereafter. The plant is designed to manufacture a wide spectrum of steel products, including advanced and value-added grades aimed at reducing reliance on imports and supporting domestic manufacturing growth under the Viksit Bharat 2047 vision.
On the sidelines of the ceremony, the company signed two Memorandums of Understanding with the Government of Andhra Pradesh to strengthen industrial skills and workforce readiness in the region. These agreements include collaboration with the New Age Makers’ Institute of Technology (NAMTECH), a not-for-profit initiative focused on education and skilling, to develop a future-oriented talent ecosystem aligned with evolving industry requirements.
In a message marking the occasion, Prime Minister Narendra Modi described the project as an important step in enhancing India’s steel production capabilities and advancing Andhra Pradesh’s industrial development. He noted that the initiative would create employment opportunities, support innovation, and contribute to India’s emergence as a global leader in steel manufacturing.
Chief Minister Chandrababu Naidu highlighted the project as evidence of growing investor confidence in Andhra Pradesh, reaffirming the state government’s commitment to facilitating its successful execution. Union Minister H.D. Kumaraswamy emphasised the importance of large-scale investments and advanced technologies in achieving India’s long-term steel capacity goals.
Lakshmi Mittal described the project as a significant milestone in the company’s long-standing association with India, underscoring its role in supporting economic growth and self-reliance. Aditya Mittal pointed to the plant’s strategic location, strong logistics connectivity, and access to raw materials as key advantages, while stressing the importance of maintaining high safety standards during construction.
Leaders from Nippon Steel, including Tadashi Imai and Takahiro Mori, highlighted the project as a continuation of the long-term partnership between India and Japan, with steel playing a central role in supporting economic expansion.
Dilip Oommen noted that the initiative reflects coordinated planning and collaboration, with a focus on job creation, sustainability, and community development, reinforcing the company’s commitment to contributing to India’s industrial progress.
Steel production at the site is scheduled to begin by early 2029, with additional units becoming operational in a phased manner thereafter. The coastal location and connectivity to key raw material sources are expected to enhance operational efficiency and competitiveness, particularly in serving growing demand across southern India.
Alongside the industrial development, AM/NS India has entered into agreements with the Government of Andhra Pradesh to strengthen workforce development. These initiatives include collaboration with the New Age Makers’ Institute of Technology (NAMTECH) to build a skilled talent ecosystem that integrates advanced manufacturing, education, and research.
ArcelorMittal and Nippon Steel are joint venture partners in ArcelorMittal Nippon Steel India, a leading integrated flat carbon steel producer in the country. The company has a crude steel capacity of 9 million tonnes per annum, advanced downstream facilities, and a pellet production capacity of 20 million tonnes, serving diverse sectors with a broad portfolio of flat and value-added steel products.
