Green nod for India’s largest steel plant in Andhra Pradesh

The stage is set for India’s largest greenfield steel plant in Andhra Pradesh, with the project proposal by ArcelorMittal Nippon Steel (AM/NS) India receiving environmental clearance and 2,200 acres of land for setting up a blast furnace facility of 8.2 million tonnes per annum (MTPA)capacity in Anakapalli district. The mega project entails an initial investment of Rs 80,000 crore, marking a major milestone for the state’s industrial expansion.According to information, the company is expected to commence construction at the Rajayyapeta site within the current calendar year. AM/NS had submitted its proposal to the Andhra Pradesh government in August 2024, and the project has since progressed swiftly through the approval stages.
In the first phase, AM/NS will develop the 8.2 MTPA facility, with plans to expand capacity up to 24 MTPA in subsequent phases. The total investment could exceed Rs 1.5 lakh crore, and the company has sought an additional 3,300 acres of land for the second-phase expansion.AM/NS, a joint venture between ArcelorMittal and Nippon Steel, has also finalised arrangements for iron ore supply from the Bailadila mines in Chhattisgarh through a slurry pipeline which will be laid parallel to an existing one. “We are very impressed by the speed with which the Andhra Pradesh government allotted and handed over the land and facilitated the necessary resource links and clearances required for this world-class project,” said Aditya Mittal, CEO of ArcelorMittal.The company already operates a pellet plant in Visakhapatnam**, with a 267-km slurry pipeline transporting iron ore from Bailadila through Chhattisgarh, Odisha, and Andhra Pradesh. The proposed additional pipeline will further streamline raw material transport for the greenfield plant.
According to state government officials, earlier objections from the National Mineral Development Corporation (NMDC) regarding the pipeline route have been amicably resolved. “The use of slurry pipelines will significantly reduce pollution, eliminating the need for truck movement and dust generation during loading and unloading,” an official noted.
Industry experts have expressed surprise at the unprecedented speed of approvals. The entire process from land identification and public hearings to final environmental clearance was completed within 14 months , a timeline that typically ranges between two and four years.“The land allocated by the state government is free from all common challenges  there are no forest zones, wildlife habitats, rivers, or tribal settlements in the area,” said Manoranjan Kumar, former chief of port operations and development at AM/NS, who played a key role in advancing the proposal.The upcoming steel plant is expected to generate large-scale employment, boost industrial activity in coastal Andhra Pradesh, and strengthen India’s position as a global steel manufacturing hub.