ArcelorMittal-Nippon Steel, a joint venture between the steel giants, announced an investment of ₹1.4 lakh crore for a large, integrated steel plant in Andhra Pradesh’s Anakapalli district. It is going to be one of India’s largest greenfield steel projects, which will also establish 17.8 million tonnes per annum production capacity to significantly contribute to the country’s steel output. The investment is towards sustainable and high-end steel production and is in line with the Indian government’s push towards reducing imports of steel and subsequently increasing domestic manufacturing.
Project Details
The project will be divided into two major phases. The first phase deals with an investment of ₹80,000 crore on building an initial 7.3 MTPA capacity on a 2,600-acre land plot. This phase would lay the groundwork for a high-tech facility on the lines of environment-friendly “green steel” technology, which will attempt to cut carbon emissions without trading off production efficiency.
The second phase, likely to cost another ₹60,000 crore, is going to add another 2,000 acres to the site and take the plant’s capacity up to 10.5 MTPA.
Strategic Location and Infrastructure
Of course, one critical location aspect of the Anakapalli plant is its proximity to the Nakkapalli port, which makes it easier to import raw materials. Proximity to Andhra Pradesh’s bulk drug park at Nakkapalli further adds to the advantages available to the plant in terms of logistics. To simplify the sourcing of raw materials from global vendors, AM/NS India has sought approvals for a dedicated jetty at the port.
High-Value Sectors Focus
The thrust of this plant has been on production for the high value sectors, foremost of which is the automobile sector that is one of the largest consumers of prime-grade steel. The focus on quality and specialization is likely to make India less dependent on imports and hence increase its self-reliance on critical industrial inputs.
Commitment to Green Steel Technology
In keeping with the sustainability strategy, the plant from AM/NS India is developing “green steel” technologies to have the lowest environmental impact. High production technology is brought in to reduce emissions, energy consumption, and carbon footprint so that the unit happens to be a future prototype for efficient, non-polluting steel manufacturing in India. It goes with the global trend of decarbonizing steel across the world and goes hand-in-hand with the government’s intentions of making the industrial base of India cleaner.
Ground breaking in January 2025, the achievement represents a significant step toward the long-term vision for AM/NS India to increase capacity from 12 MTPA to 40 MTPA by 2035. This ambitious target mainly increases production capacity, strengthens India’s foothold in the global steel sector while supporting economic growth for the development of Andhra Pradesh through employment opportunities, infrastructure investment, and industrial growth.