Naidu Announces March 23 Ground-Breaking for AM/NS Steel Plant

Andhra Pradesh Chief Minister N. Chandrababu Naidu announced on Wednesday that he will inaugurate the ground-breaking ceremony for ArcelorMittal Nippon Steel India’s Integrated Steel Plant (ISP) at Rajayyapeta in Anakapalli district on March 23. He made the announcement during the inaugural session of the Collectors’ Conference.

The company will build a 17.80-million-tonnes-per-annum (MTPA) integrated steel plant in two phases. The State government approved the plan in November 2024. The first phase will produce 8.20 MTPA and include a port-integrated manufacturing complex.

ArcelorMittal Nippon Steel India invited Expressions of Interest (EoI) on Wednesday. Qualified suppliers can set up a dedicated one-million-tonne steel fabrication unit near the site. The company expects to complete the unit within four years. Suppliers must submit detailed profiles, including business operations, annual turnover, manufacturing capacity, and monthly production commitment.

The Government of Andhra Pradesh allotted about 2,200 acres of land for the project. The plant will produce six types of finished steel products, including hot rolled coils, cold rolled coils, galvanised auto coils, and hot rolled coils from thin slab casting.

The company will divert a 244-km iron ore slurry pipeline from NMDC’s Bailadila mines. The pipeline currently supplies raw material to its pellet plant. Engineers will reroute it near Peddapeta village, and a cadastral survey is under way to secure the remaining 54-km stretch to the plant.

Instead of electric or Con-Arc furnaces, the company chose the basic oxygen furnace route. Officials said it offers higher productivity and suits large-scale integrated steel production.

The plant’s major units follow the latest engineering standards. Officials added they will ensure efficient operations while meeting environmental norms.