Work on AMNS steel plant near Nakkapalli to begin soon

ArcelorMittal Nippon Steel India (AMNS) is set to begin work on its greenfield steel plant near Nakkapalli in Anakapalle district, about 80 km from Visakhapatnam. The Centre has cleared all approvals for the project. Union Minister of State for Steel and Heavy Industries Bhupathiraju Srinivasa Varma announced at the Indian Steel Association Conclave in New Delhi that the foundation stone would be laid shortly.

The announcement comes after Chief Minister N. Chandrababu Naidu urged the Centre to speed up clearances. AMNS has already signed an MoU with the State government to establish the plant, which will also have a captive port.

The steel plant will involve a total investment of Rs 1.35 lakh crore. In the first phase, the company will spend Rs 55,964 crore to create a capacity of 7.3 million tonnes. The second phase will add Rs 80,000 crore and expand the capacity to 10.55 million tonnes.

To reduce logistics cost and emissions, raw materials will be supplied through a slurry pipeline. The Chief Minister had earlier highlighted this proposal to Prime Minister Narendra Modi during his visit to Visakhapatnam.

More than 2,000 acres will be handed over to the company in the first phase, as land survey and acquisition are complete. AMNS has also secured permission to build a captive jetty — the first such approval in Andhra Pradesh. The jetty, to be built in two phases with an investment of over Rs 11,000 crore, will handle 20.5 million tonnes of cargo annually.

The project is expected to generate large-scale employment. AMNS has committed to providing 20,000 jobs in the first phase and 35,000 in the second. The State Investment Promotion Board has also approved allotment of additional land in two tranches for the expansion of the jetty.