ArcelorMittal Nippon Steel (AM/NS), a Luxembourg-based multinational steel manufacturing company, has announced plans to invest Rs 1.47 lakh crore [1] in a new steel plant in Andhra Pradesh. This significant investment is set to be developed in two phases, with the first phase involving an expenditure of Rs 61,780 crore to achieve a production capacity of 7.3 million tonnes (MT) per annum. The second phase will see an additional investment of Rs 85,382 crore, increasing the production capacity to 10.5 MT annually.
The steel plant, which will be located in the Nakkapalli mandal of Anakapalli district, is expected to create approximately one lakh jobs. This development comes as a result of the efforts of HRD and IT Minister Nara Lokesh, who played a crucial role in facilitating the project. Initial discussions for the steel plant took place during the World Economic Forum (WEF) in Davos in 2018, where Lokesh and Aditya Mittal, CEO of ArcelorMittal, discussed the potential for setting up the plant in Andhra Pradesh.
Despite facing delays due to a change in the state government in 2019, the TDP-led NDA government under Chief Minister N Chandrababu Naidu managed to revive the project and secure the commitment of ArcelorMittal Nippon Steel India Management. The trust in the leadership of the Chief Minister and the NDA government played a significant role in bringing the project to fruition.
The establishment of the steel plant is expected to have a substantial impact on the local economy, providing a boost to the industrial sector and creating numerous job opportunities. With a total production capacity of 17.8 MT per annum, the integrated steel plant will be one of the largest in India, aligning with the vision of creating a self-reliant India (Aatmanirbhar Bharat) by reducing the country’s dependence on imported steel and promoting domestic production.
In addition to economic benefits, the steel plant is also expected to contribute to the development of infrastructure in the region. The project will likely attract further investments in related industries, such as logistics, transportation, and construction, fostering overall growth and development in Andhra Pradesh.
The successful implementation of this project will not only strengthen the position of ArcelorMittal Nippon Steel in the Indian market but also enhance the state’s reputation as an attractive destination for industrial investments. As the project progresses, it will be essential to monitor its impact on the local community and the environment, ensuring that sustainable practices are followed throughout the development and operation of the steel plant.
Sources:
[1] ArcelorMittal Nippon Steel to set up Rs 1.47 lakh crore plant in Andhra Pradesh https://www.newindianexpress.com/states/andhra-pradesh/2025/Mar/07/arcelormittal-nippon-steel-to-set-up-rs-147-lakh-crore-plant-in-andhra-pradesh