ArcelorMittal Nippon Steel India’s proposed greenfield plant in Andhra Pradesh will come up with an initial capacity of 8.2 million tonnes per annum (MTPA), placing it among the larger new-age steelmaking facilities in the country, with a first-phase investment of over Rs 70,000 crore to be deployed in stages.
The integrated plant at Rajayyapeta in Anakapalli district is part of a planned Rs 1.35 lakh crore investment and is expected to generate around 100,000 direct and indirect jobs. The company indicated that steelmaking operations are targeted to begin by the first quarter of calendar year 2029, with subsequent capacity additions planned in later phases.
“Today marks the next chapter in our partnership with India, built on shared ambition and trust,” Lakshmi Mittal, executive chairman, ArcelorMittal, said on Monday as the company laid the foundation stone for the greenfield integrated steel plant.
What did Dilip Oommen say?
Dilip Oommen, CEO, ArcelorMittal Nippon Steel India, said the project reflects coordinated planning to build world-class steelmaking capacity in Andhra Pradesh and will support jobs and local development.
The coastal location of the plant, along with connectivity to iron ore sources through existing slurry pipelines, is expected to aid logistics and cost efficiencies. The company said the facility will cater to demand in southern markets while also supplying to other regions.
“It’s coastal position and connectivity to the iron-ore belt through our slurry pipeline make it an efficient location to manufacture steel,” the company’s leadership said, adding that South India remains a fast-growing market.
The plant will produce value-added steel aimed at sectors such as automotive, infrastructure, renewable energy and defence, with a focus on reducing import dependence. The project aligns with the National Steel Policy, 2017, which targets 300 MTPA domestic steel capacity by 2030–31.
Andhra Pradesh chief minister Chandrababu Naidu said the investment reflects growing global confidence in the state as an industrial destination.
The company also signed two memorandums of understanding with the state government to develop a skilling ecosystem in partnership with its initiative, NAMTECH, alongside the project rollout.
(The correspondent is in Visakhapatnam at the invitation of ArcelorMittal Nippon Steel India)