Andhra Pradesh CM lays foundation stone for Rs 1.35 lakh crore steel plant

Visakhapatnam, March 23 (IANS) Andhra Pradesh Chief Minister N. Chandrababu Naidu on Monday laid the foundation for ArcelorMittal Nippon Steel (AM-NS) India plant at Nakkapalli in Anakapalli district, saying that the state is the best destination for industrial investments in India.

Union Minister of Heavy Industries and Steel HD Kumara Swamy was also present at the event.

CM Naidu said that the project marks not just the beginning of a steel plant but the foundation of a future Steel City in the region.

Speaking on the occasion, the Chief Minister said the mega project will significantly accelerate development in North Andhra and contribute to meeting the country’s growing steel demand.

The project, with a total proposed investment of Rs 1.35 lakh crore, will be executed in phases, with the first phase involving Rs 70,000 crore to establish an 8.2 million tonnes per annum capacity. Once fully completed, it will have a production capacity of 17.8 million tonnes of steel.

The plant is expected to generate over 1 lakh jobs, both directly and indirectly.

The project includes the development of a captive port worth Rs 11,198 crore, a four-lane road connecting to national highways and a pipeline for raw material supply.

The first phase of production is targeted for 2028, with major blast furnace installations expected by 2030.

The Chief Minister stated that such a globally reputed company choosing Andhra Pradesh reflects the state’s investor-friendly policies and efficient governance.

The Chief Minister thanked Prime Minister Narendra Modi for his support, stating that the project aligns with national initiatives like Make in India and Atmanirbhar Bharat. He termed it a success of the “double-engine government.”

The Chief Minister highlighted that Andhra Pradesh is witnessing rapid industrial growth across sectors such as data centres, food processing, manufacturing and tourism.

He mentioned that a Google Data Centre is set to be established in Visakhapatnam. This marks the first instance in the country where a single project has attracted Foreign Direct Investment (FDI) amounting to $15 billion.

Within just 20 months of this people-centric government assuming office, the state has attracted investments totalling Rs 20.35 lakh crore, he said.

As the Visakhapatnam Economic Region evolves, the city will emerge as a pivotal hub for the knowledge economy, ports, steel, data centres, and IT centres, the Chief Minister said.

Union Minister H. D. Kumaraswamy noted that projects of this scale are critical for India’s long-term steel capacity goals. He said the collaboration brings together “global expertise and domestic ambition” and will contribute to the modernisation of India’s steel ecosystem.

Kumaraswamy stated that the arrival of ArcelorMittal-Nippon Steel industry in Andhra Pradesh has realised the vision of a steel ecosystem in this region.

In accordance with the National Steel Consumption Policy, we have set a target to boost steel production across the country, he said.

He hoped that the Arcelor Nippon Steel plant would serve as a driving force for steel production, the MSME sector, and job creation.

Deputy Chief Minister Pawan Kalyan said, as the Minister for Environment, he was delighted that this project is being constructed with extremely low emission levels.

He stated that Andhra Pradesh is currently attracting 25 per cent of all investments flowing into the country. He claimed that this was possible solely due to the presence of a visionary leader like Chandrababu Naidu.

Lokesh recalled that he had met Aditya Mittal before 2019 and requested him to establish a plant in Andhra Pradesh. He said that after the coalition government came to power in 2024, the action plan for establishing this steel plant was set in motion.

He said the government expedited the allocation of land and the issuance of necessary permits. Industries of this magnitude have arrived solely on the strength of the ‘CBN brand’, he remarked.

ArcelorMittal Executive Chairman Lakshmi Mittal stated that the event marks the next chapter in their partnership with India, one built on shared ambition and enduring trust.

“I have been in the steel industry now for fifty years, and I can honestly say that what we are building here in India is one of the highlights of these 50 years. It means a lot to me that we can contribute so meaningfully towards India’s journey toward Viksit Bharat, demonstrating how world-class steelmaking can power sustainable growth and national self-reliance.”

Chairman of ArcelorMittal Nippon Steel India and CEO of ArcelorMittal thanked the Government of Andhra Pradesh as well as the Government of India for their steadfast support in bringing this project to life.

“Steel is the fabric of life, and we are proud to have the opportunity to contribute to expanding India’s steel capabilities with this amazing new plant, which will be one of the most competitive, modern facilities in the country. Its coastal position and the fact that it can easily be connected to the richest iron-ore belt in the country through our existing slurry pipeline make this an excellent place to manufacture steel,” he said.

–IANS

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