AM/NS India Launches Rs.70,000 Cr Mega Steel Plant in Andhra Pradesh

Andhra Pradesh — ArcelorMittal Nippon Steel India (AM/NS India) laid foundation stone for its new 8.2 Million Tonnes Per Annum (capacity as per Environment Clearance) integrated steel plant at Rajayyapeta in Anakapalli district, Andhra Pradesh on Monday. The project entails an estimated investment of over ₹70,000 crore, which will be infused in a phased manner. Additionally, the project is expected to generate about one lakh direct and indirect employment opportunities as the plant’s construction and development progress.

The ceremony was attended by Chief Minister of Andhra Pradesh  N. Chandrababu Naidu,  Union Minister of Steel & Heavy Industries H.D. Kumaraswamy, Deputy Chief Minister of Andhra Pradesh  K. Pawan Kalyan, and Minister for IT, Electronics & Communication, Human Resource Development (HRD), and Real-Time Governance in Andhra Pradesh Nara Lokesh.

Also present were Lakshmi Mittal, Executive Chairman, ArcelorMittal, Aditya Mittal, Chairman, ArcelorMittal Nippon Steel India and CEO, ArcelorMittal, and Dilip Oommen, Chief Executive Officer, ArcelorMittal Nippon Steel India.

The event attracted considerable excitement and attention from across the state. Thousands of people travelled to participate in this moment that starts to turn ArcelorMittal Nippon Steel India’s vision to establish one of the country’s most advanced steelmaking facilities, into reality.

For ArcelorMittal Nippon Steel India, the plan was always to harness their industry leading capabilities to support India’s goal to enhance domestic crude steelmaking capacity to 300 MTPA by 2030 – 31, in alignment with the National Steel Policy. Alongside building new capacity, ArcelorMittal Nippon Steel India has also launched a number of “country-first” high-quality steels. ArcelorMittal Nippon Steel India is the country’s first integrated steel producer to receive Green Steel Certification under the Ministry of Steel’s newly established Green Steel Taxonomy.

The steel manufacturing operations of the new plant at Rajayyapeta are planned to commence by the first quarter of calendar year 2029, with other units likely to be ready in a calibrated and phased manner over the following several quarters. 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 in line with Viksit Bharat 2047.

On the occasion, ArcelorMittal Nippon Steel India has also signed two landmark Memorandums of Understanding (MoUs) with the Government of Andhra Pradesh. The purpose of the MoUs is for 

ArcelorMittal Nippon Steel India to build, along with the New Age Makers’ Institute of Technology (NAMTECH), a future-ready industrial talent ecosystem in Andhra Pradesh by connecting advanced technology, materials innovation, education, and workforce development with the needs of modern industries. The NAMTECH is a not-for-profit education and skilling initiative of ArcelorMittal Nippon Steel India.

Prime Minister Narendrabhai Modi said: “I congratulate Andhra Pradesh on this important milestone. The launch of this project marks the beginning of a world-class integrated steel plant that will further strengthen India’s steelmaking capabilities. It is a major milestone in Andhra Pradesh’s development journey and create opportunities for its youth and position the state at forefront of industrial innovation. It will also strengthen India’s position as a global steel manufacturing leader.”

Addressing the ceremony,  N. Chandrababu Naidu, Chief Minister of Andhra Pradesh, said: “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. The Andhra Pradesh government is fully committed to supporting ArcelorMittal Nippon Steel India in realising this investment that will drive growth, create jobs, and strengthen the state’s role in India’s industrial future.”

H.D. Kumaraswamy, Union Minister of Steel & Heavy Industries, said: “As India – the second largest crude steel producer in the world – advances towards its long-term steel capacity goals under the vision of Viksit Bharat 2047, projects of this scale will require sustained investment, advanced technologies, and strong execution capabilities. This collaboration 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.”

Lakshmi Mittal, Executive Chairman, ArcelorMittal, said: “Today marks the next chapter in our partnership with India, one built on shared ambition and enduring trust. I have been in the steel industry now for fifty years, and I can honestly say that what we are building here in India is one of the highlights of these 50 years. It means a lot to me that we are able to contribute so meaningfully towards India’s journey toward Viksit Bharat, demonstrating how world-class steelmaking can power sustainable growth and national self-reliance. Thank you to everyone who is supporting this project, which I hope will also be transformational for the local communities and the state of Andhra Pradesh more broadly.”

Aditya Mittal, Chairman, ArcelorMittal Nippon Steel India and CEO, ArcelorMittal, said: “I would like to thank the Government of Andhra Pradesh as well as the Government of India, for their steadfast support in bringing this project to life. Steel is the fabric of life, and we are proud to have the opportunity to contribute to expanding India’s steel capabilities with this amazing new plant, which will be one of the most competitive, modern facilities in the country. Its coastal position and the fact it can easily be connected to the richest iron-ore belt in the country through our existing slurry pipeline, make this an excellent place to manufacture steel. South India is one of the fastest growing markets with excellent logistics, and so the plant will be able to cater to all the customers in the region as well as more broadly throughout India. Now the construction will start – and the focus will be on ensuring that this is managed with safety always at the core. I look forward to seeing the progress and celebrating the major construction milestones along the way. The completion of this facility will further augment the position of ArcelorMittal Nippon Steel India as one of the leading steel companies in the country.”

adashi Imai, Representative Director, President and COO, Nippon Steel Corporation, said: “The plant in Rajayyapeta represents an important next phase of our growth. Our investment reflects the spirit of the Japan – India relationship, a partnership built on trust, mutual respect, and a shared commitment to long term development. Our commitment to India will not be defined by a single project, but by where we stand decades from now – continuing to invest, innovate, and grow together with this great nation.”

Takahiro Mori, Vice Chairman, Nippon Steel Corporation and Member, Board of Directors, ArcelorMittal Nippon Steel India, said: “India is laying a strong foundation for long term growth, and steel will play a central role in this journey. We are honoured that Nippon Steel, through ArcelorMittal Nippon Steel India, continues to contribute to India’s national aspiration of expanding steel capacity. We thank the Government of India and the Government of Andhra Pradesh for their support, and we look forward to building the future together.”

Dilip Oommen, Chief Executive Officer, ArcelorMittal Nippon Steel India, said: “This is a proud moment for everyone at ArcelorMittal Nippon Steel India. It represents the effective collaboration and planning to develop world-class steelmaking in Andhra Pradesh. The plant will create jobs, enable sustainable development, and demonstrate how industry and community progress can go hand in hand. Guided by our promise of building ‘Smarter Steels, Brighter Futures’, and the spirit of ‘Banaunga Main, Banega Bharat’, we see this project as a meaningful contribution to India’s long-term industrial growth.”

The plant will be built to a robust Environmental Management Plan designed to minimise environmental impact, conserve resources, and enhance biodiversity across the project site, and will show how modern steelmaking can accelerate India’s path to decarbonisation and energy transition while supporting long-term industrial growth. Additionally, the company will scale its community development initiatives to ensure shared prosperity and inclusive growth.