ArcelorMittal Nippon Steel starts buying land to build plant in Andhra

ArcelorMittal Nippon Steel India (AM/NS India) has begun the land acquisition process at Rajayapeta in Andhra Pradesh, where it plans to set up an integrated steel plant, the company said on Friday.

This is the first large greenfield plant to be set up in the country in nearly a decade, after the first phase of Tata Steel's Kalinganagar project was commissioned in 2016 with an initial capacity of 3 million tonne. ET reported on November 3, 2024, that the steelmaker will be investing ₹1.40 lakh crore in setting up an integrated steel plant in the Anakapalli district in the state, which will have an annual production capacity of 17.8 million tonne.

AM/NS India has made the initial payment for acquiring the land in Andhra Pradesh, and possession is expected soon, after which the company will start work on the greenfield project. The plant will have an initial capacity of 7.3 million tonne.


"Our investment today is the first step in an exciting plan to build a world-class steel plant in Andhra Pradesh that strengthens our contribution to India's long-term steel manufacturing ambitions," Aditya Mittal, chairman of the company, said.

AM/NS India will invest ₹80,000 crore for 7.3 million tonne in the first phase of the project, and then invest ₹60,000 crore for adding 10.5 million tonne in the second phase, ET had reported in November.

It has sought 2,600 acres of land for the first phase of the project, and has sought an additional 2,000 acres of land for the second phase. The company didn't provide details on the land and the investment it will be making. AM/NS - a joint venture between ArcelorMittal and Nippon Steel - currently has a production capacity of 9 million tonne in India at its plant in Hazira in Gujarat.