India Clears ₹80,000 Crore Greenfield Steel Project in Andhra Pradesh
India’s steel manufacturing landscape is poised for a major expansion with AM/NS India receiving both environmental clearance and 2,200 acres of land to build a...
India’s steel manufacturing landscape is poised for a major expansion with AM/NS India receiving both environmental clearance and 2,200 acres of land to build a massive 8.2 million tonnes per annum (MTPA) greenfield steel plant in Andhra Pradesh’s Anakapalli district. The ₹80,000 crore project — to be established in Rajayyapeta — represents one of the country’s largest single-location steel investments to date.
Fast-Tracked Project Gets Green Light
The proposal, submitted to the Andhra Pradesh government in August 2024, has moved from concept to clearance in record time — just 14 months. According to state and industry sources, this includes every stage from land identification and public hearings to environmental and resource clearances.
“This kind of turnaround is unprecedented for a project of this scale,” said Manoranjan Kumar, former chief of port operations and development at AM/NS, who spearheaded the proposal. “The land allotted is completely clear of forest, wildlife, and tribal habitation, which helped accelerate the process.”
The first phase of the project will see the construction of the 8.2 MTPA blast furnace-based steel facility, while later phases will expand total capacity to 24 MTPA, bringing overall investment to more than ₹1.5 lakh crore.
A Strategic Partnership: ArcelorMittal and Nippon Steel
AM/NS India, a joint venture between ArcelorMittal and Nippon Steel, is one of the country’s leading integrated steel producers. The new Anakapalli facility will complement the company’s existing pellet plant in Visakhapatnam and create a full-scale steelmaking ecosystem across the state.
ArcelorMittal CEO Aditya Mittal praised the proactive approach of the Andhra Pradesh government:
“We are all very impressed by the speed with which the government allotted land, handed it over, and supported us with resource links and permits. This project will be a world-class benchmark for sustainable steelmaking in India.”
Sustainable Resource Network and Pollution Control
To ensure efficient raw material supply, AM/NS has finalized an agreement to source iron ore from the Bailadila mines in Chhattisgarh, transported via a new slurry pipeline running parallel to an existing 267 km line that connects to Visakhapatnam.
Negotiations with the National Mineral Development Corporation (NMDC), which had initially raised objections, have now been settled. A senior state official noted that the pipeline will reduce environmental impact:
“There will be no truck movement for ore transport, which means no dust from loading and unloading operations — a major step toward curbing industrial pollution.”
Industrial Policy Success for Andhra Pradesh
The speed of project approvals underscores Andhra Pradesh’s growing reputation as one of India’s most industry-friendly states. The Anakapalli steel project is expected to generate tens of thousands of direct and indirect jobs and strengthen the coastal district’s position as an emerging industrial hub near Visakhapatnam Port.
Economists say the move aligns with India’s broader strategy to boost domestic steel output to 300 MTPA by 2030 under the National Steel Policy, ensuring the country’s manufacturing sector keeps pace with global demand.
What Comes Next
Construction is expected to begin before the end of 2025, with the first phase targeted for completion within four years. Once operational, the Anakapalli plant will produce a wide range of automotive-grade, construction, and high-strength steel, serving both domestic and export markets.
Industry analysts note that the plant’s coastal location offers significant logistical advantages for iron ore imports and finished steel exports, potentially transforming the region into a southern steel corridor.