ArcelorMittal Nippon Steel to set up Rs 1.36 lakh crore greenfield steel plant in Andhra Pradesh

The minister informed that steel manufacturing operations at ArcelorMittal Nippon Steel’s new plant is targeted to start by the first quarter of calendar year 2029.

ArcelorMittal Nippon Steel India, a joint venture between ArcelorMittal and Japan’s Nippon Steel, on Monday laid foundation stone for a greenfield steel project in Andhra Pradesh that will have the production capacity of 17.8 million metric tonnes per annum (MMTPA).

The company targets to invest Rs 1.36 lakh crore in the project in a phased manner.

In the first phase, which is targeted to be completed by 2028-29, the proposed investment is pegged at Rs 70,000 crore. Environment clearance has been given for the first phase of the project for the production capacity of 8.2 MMTPA.

The project is expected to generate nearly one lakh jobs, said Andhra Pradesh’s Minister for IT, Electronics & Communication and Human Resource Development Nara Lokesh.

Addressing a select media briefing Lokesh said Andhra Pradesh government has outlined plans to develop several industrial clusters in the state including for steel, glass and horticulture. 

The minister informed that steel manufacturing operations at ArcelorMittal Nippon Steel’s new plant at Rajayyapeta located in Anakapalli district of Andhra Pradesh is targeted to start by the first quarter of calendar year 2029.

The plant will produce a diverse range of steel grades, including high-quality, value-added products that will enhance India’s self-reliance, reduce imports, and strengthen its manufacturing base.  

“ArcelorMittal celebrates its twentieth anniversary later this year. For these last two decades we had a vision to build a world-class greenfield steel plant here in India. This is my country. A country I love. A country I have always wanted to contribute to,” said Lakshmi Mittal, Executive Chairman, ArcelorMittal.

Mittal underlined that the demands for high-quality, domestically produced steel would continue to rise in India with the high economic growth.

“Half a century has passed since I set up my first steel plant. I still remember the excitement of my early days — the sense that we were building something that mattered. I feel the same sense of possibility about what we are starting now,” he added.

Union Minister of Steel & Heavy Industries H.D. Kumaraswamy said the central government has taken a number of steps to boost investments in the steel sector. India targets to increase domestic crude steelmaking capacity to 300 million tonnes per annum by 2030-31.

Kumaraswamy said ArcelorMittal and Nippon Steel collaboration to set up a new manufacturing unit brings together global expertise and domestic ambition to strengthen India’s steel ecosystem. “I extend my best wishes to ArcelorMittal Nippon Steel India and look forward to this facility contributing meaningfully to the growth and modernisation of the Indian steel industry,” he added.

“This project is another strong example of Andhra Pradesh’s status as a preferred investment destination and a reflection of strengthening global business confidence in our state,” said N. Chandrababu Naidu, Chief Minister of Andhra Pradesh.