AP clears 2.9-km waterfront for AMNS captive port

The Andhra Pradesh Government has sanctioned a 2.9-km waterfront at DL Puram in Anakapalle district for developing a captive port for ArcelorMittal-Nippon Steel (AMNS) India’s proposed integrated steel plant, subject to mandatory clearances from the Defence, Home and Shipping Ministries and other statutory agencies.

The decision was notified through three Government Orders, including G.O. Ms. No. 5 of the Infrastructure and Investment Department, issued on April 9, 2025.

The proposed port is located near the Naval Alternate Operating Base (NAOB) at Rambilli, a strategic Indian Navy facility situated about 60 km south of Visakhapatnam. The government order stated that the port limits at DL Puram lie beyond the three-nautical-mile buffer zone prescribed in the NAOB Rambilli notification.

The port allocation is conditional on AMNS establishing a 17.8-million-tonne-per-annum integrated steel plant in two phases. The first phase, with a capacity of 7.3 MTPA, is expected to generate about 20,000 jobs by 2029. The second phase will add another 10.5 MTPA.

The company will also have to pay charges for reclaimed land, waterfront royalty, and other applicable dues as prescribed by the Andhra Pradesh Maritime Board.

AMNS India, a joint venture between ArcelorMittal and Nippon Steel Corporation, has proposed an investment of ₹1.35 lakh crore in the steel project. The company had earlier proposed a port-based steel plant at Rajayyapeta, with a potential capacity of 20–24 MTPA, subject to the availability of land, water, power, road connectivity and iron ore supply linkages.

The company has maintained that a captive port near the steel plant is essential for handling raw materials and cargo and for achieving economies of scale amid fluctuations in the prices of coal, coke, iron ore and other inputs.