In a significant development for Andhra Pradesh, global steel leaders ArcelorMittal and Japan’s Nippon Steel have announced plans to establish a Greenfield steel project with a capacity of 17.8 million tonnes. The joint venture, named AM/NS India, will involve an investment of ₹1.4 lakh crore in Anakapalli district.
The steel plant will be built in two phases. The first phase will include the construction of a blast furnace steel plant with a production capacity of 7.3 million tonnes per annum, requiring an initial investment of ₹80,000 crore. The foundation stone for the project is anticipated to be laid in early 2025 by Chief Minister N. Chandrababu Naidu, marking one of the largest recent investments in the sector.
This announcement comes as the Union Steel Ministry has allocated ₹1,640 crore to revive Rashtriya Ispat Nigam Ltd (RINL), the entity managing the Visakhapatnam Steel Plant, which has been operating at a loss. AM/NS India has requested 2,600 acres for the first phase and an additional 2,000 acres for the second phase of the steel plant.
The Andhra Pradesh government is preparing to provide approximately 1,800 acres of land near the Nakkapalli bulk drug park, which is readily available for transfer. Additional land will be allocated as the project advances.
ArcelorMittal has been exploring potential sites in both Andhra Pradesh and Odisha for an integrated steel plant for some time. The Nakkapalli location is deemed suitable due to its access to a port, sufficient water supply, and necessary raw materials, all of which are critical for establishing a Greenfield steel project.
The successful acquisition of this mega project for Andhra Pradesh follows a series of proactive efforts by the state’s IT Minister, Nara Lokesh. He engaged directly with Aditya Mittal, CEO of ArcelorMittal, in July to discuss the company’s requirements for setting up operations in India. This dialogue culminated in a final agreement reached during discussions between Chief Minister Naidu and Lakshmi Mittal, paving the way for the proposed steel plant.
With this project, Andhra Pradesh is poised to significantly enhance its industrial landscape, attracting further investment and boosting the local economy through job creation and infrastructure development. The collaboration between ArcelorMittal and Nippon Steel represents a strong commitment to the region’s growth and its potential as a hub for steel manufacturing in India.
