Foundation Stone Laid For Mega Rs 1.35 Lakh Crore Steel Plant In Anakapalle
The integrated steel plant will be developed in two phases across 5,465 acres in Rajayyapet village of Nakkapalle mandal in Anakapalle district.
Published : March 23, 2026 at 7:04 PM IST
|Updated : March 23, 2026 at 8:40 PM IST
Anakapalle: Andhra Pradesh took another major step towards industrial growth as Chief Minister N Chandrababu Naidu, along with Union ministers, laid the foundation stone for a mega steel plant by ArcelorMittal and Nippon Steel India.
The integrated steel plant will be developed in two phases across 5,465 acres in Rajayyapet village of Nakkapalle mandal in Anakapalle district, with a total production capacity of 17.8 million tonnes per annum. The event was attended by Andhra Pradesh Deputy Chief Minister Pawan Kalyan, along with several ministers, MLAs, company representatives, and local leaders.
The project involves a total investment of Rs 1,35,964 crore. In the first phase, construction will be carried out on 2,600 acres at an estimated cost of Rs 80,000 crore, with production expected to begin by 2029. The plant is projected to generate employment and livelihood opportunities for around one lakh people.
The ArcelorMittal Greenfield Integrated Steel Plant will also include the development of a captive port at a cost of Rs 11,198 crore, which is expected to create an additional 6,000 jobs. With the entry of AMNS India, the Visakhapatnam region is set to emerge as a major industrial hub.
The Andhra Pradesh government has assured full support for the timely completion of the project. Infrastructure development is already underway, including the rapid expansion of a four-lane road to connect the plant with National Highway 16.
Speaking at a public meeting following the groundbreaking ceremony, ArcelorMittal Executive Chairman Lakshmi Mittal said the company is committed to contributing to India's growth. He talked about the importance of steel in achieving the goals of Atmanirbhar Bharat and Viksit Bharat as critical in infrastructure development across sectors.
Chandrababu said that a new history is being written in Nakkapalle in Uttarandhra. He said that a bigger industry than the Visakhapatnam steel industry is going to be set up in Rajayyapet. He described the investment of ArcelorMittal as a great turning point.
"India's largest steel plant is going to be set up in Nakkapalli. ArcelorMittal Steel Plant is going to be the number one steel industry in the world. This plant is possible only because of the support of the Centre," the Telugu Desam Party chief said.
"We promised in the elections that we would rebuild the state. We promised development, welfare and good governance. We have fulfilled the promises made in 20 months. Thank you to Pawan Kalyan, who is supporting us unconditionally, no matter what we do. Congratulations to (Andhra Pradesh IT Minister) Nara Lokesh, who worked systematically to bring this project," Naidu said.
"We will complete this project in two phases. Today, we are not just laying the foundation for a steel plant. We have laid the foundation for a steel city. Steel production will start from December 2028. This plant will change the face of this region. We are moving from ease of doing business to speed of doing business. We have acquired land at a record level, unlike anywhere else in the world," added the Chief Minister.
He also asserted that Andhra Pradesh is the destination for investments in the country. "There is no other place in Andhra Pradesh where resources are as abundant. Investors should make Andhra Pradesh their centre for amazing achievements. We have already achieved investments of Rs 20 lakh crore. We will provide job opportunities to 22 lakh people in three years. We will make Visakhapatnam a world-class city. We will develop Visakhapatnam, Amaravati and Tirupati into three regions. Visakhapatnam will become a hub for rare earth minerals," Chandrababu said.
Investments are possible only because of Chandrababu: Pawan Kalyan
Pawan Kalyan said that he was happy to participate in the foundation stone laying ceremony. He thanked the representatives of the steel plant investing in Andhra Pradesh.
He said that one lakh people will get jobs and employment opportunities through the steel plant. He said that the people of Uttar Andhra will get more employment opportunities.
"The investments of Arcelor Steel Plant have increased our confidence. I said in the elections that if investments are to come, a leader with vision is needed. If Lakshmi Mittal is to be convinced and investments are to be brought in, it is possible only because of Chandrababu Naidu. Investments are coming in because of Chandrababu Naidu. Union Home Minister Amit Shah also said the same thing. The largest integrated greenfield steel plant in the country is going to be set up with state-of-the-art technology," he added.
AP is moving forward rapidly: Kumaraswamy
Union Minister HD Kumaraswamy said that Andhra Pradesh is moving forward rapidly with Chandrababu's dedication and initiative. He said that good things will happen to the people of AP due to Chandrababu and Pawan Kalyan. He praised Nara Lokesh.
He said that Andhra Pradesh is an example of how development can be achieved due to a double-engine government. "We are bringing many reforms in the steel industry. We have provided financial support to the Visakhapatnam steel industry. We have taken steps to increase production in the Visakhapatnam steel industry," he said.
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