Naidu Lays Foundation for ₹1.36 Lakh Crore Mega Steel Plant in Andhra Pradesh

March 2026 : In a significant boost to industrial growth in Andhra Pradesh and India’s steel production ambitions, Chief Minister N. Chandrababu Naidu on Monday laid the foundation stone for a massive greenfield integrated steel plant by ArcelorMittal Nippon Steel India at Rajayyapeta near Nakkapalli in Anakapalli district.

The ambitious project, valued at ₹1,35,964 crore (approximately ₹1.36 lakh crore), is among the largest industrial investments in the state. Once completed, the plant will have a production capacity of 17.8 million metric tonnes per annum (MTPA). It will be developed in two phases, with the first phase targeting a capacity of around 7.3 to 8.2 million tonnes and expected to begin operations by 2028–2029, followed by expansion to full capacity.

The foundation ceremony witnessed the presence of several key dignitaries, including Union Minister for Steel and Heavy Industries H.D. Kumaraswamy, Minister of State Srinivasa Varma, Deputy Chief Minister Pawan Kalyan, IT and HR Minister Nara Lokesh, and AM/NS India Executive Chairman Lakshmi Mittal, along with senior company officials. Lakshmi Mittal presented a model of the plant to the dignitaries, who also toured the project’s Experience Zone.

Speaking on the occasion, Naidu described the project as more than just a steel plant, calling it the foundation of a future “Steel City.” He highlighted that the state government secured the project within just 20 months through its “Speed of Doing Business” approach, attracting investments worth over ₹20.35 lakh crore since assuming office. He also credited farmers for their cooperation in land acquisition, along with streamlined approvals and administrative efficiency.

The project includes the development of a captive port with an investment of ₹11,198 crore and a handling capacity of 50 million tonnes. It will also feature dedicated pipelines for raw material transportation and connectivity through a four-lane national highway, ensuring seamless logistics.

The plant is expected to generate employment for nearly one lakh people, both directly and indirectly, with priority given to local youth from Anakapalli district. Skill development initiatives, including the establishment of a Centre of Excellence, will be introduced to train the workforce.

Naidu emphasised the transformative impact on the Uttarandhra region, positioning Visakhapatnam as a major economic hub for sectors such as steel, ports, IT, data centres, and the knowledge economy. He also highlighted upcoming investments from major companies and infrastructure projects, including a new port, an international airport, and industrial corridors.

Leaders at the event noted that the project aligns with India’s goal of achieving 300 MTPA steel production by 2030. The mega plant reinforces Andhra Pradesh’s growing reputation as an investor-friendly destination, promising long-term economic growth and employment opportunities while reshaping the state’s industrial landscape.