ArcelorMittal Nippon Steel India (AM/NS India) has marked a major step in its expansion strategy with the foundation laying of a new integrated steel plant at Rajayyapeta in Andhra Pradesh’s Anakapalli district. The proposed facility, with a planned capacity of 8.2 million ton per annum (as per Environmental Clearance), represents an investment exceeding Rs 70,000 crore, to be deployed in phases.
The project is expected to significantly contribute to regional economic growth, with an estimated one lakh direct and indirect employment opportunities anticipated during its construction and operational phases.
The foundation ceremony witnessed the presence of prominent dignitaries including Andhra Pradesh Chief Minister N. Chandrababu Naidu, Union Minister of Steel & Heavy Industries H.D. Kumaraswamy, Deputy Chief Minister K. Pawan Kalyan, and Minister for IT, Electronics & Communication, HRD, and Real-Time Governance Nara Lokesh. Senior leadership from AM/NS India and its parent organisations, including Lakshmi Mittal, Aditya Mittal, and Dilip Oommen, also attended the event, which drew participation from a large number of people across the state.
The upcoming facility is aligned with India’s broader objective of scaling its crude steel production capacity to 300 million tonnes per annum by 2030–31 under the National Steel Policy. AM/NS India has been actively contributing to this vision, including introducing several high-grade steel products and becoming the first integrated steel producer in India to receive Green Steel Certification under the Ministry of Steel’s Green Steel Taxonomy.
Steel production at the Rajayyapeta plant is targeted to commence by the first quarter of calendar year 2029, with additional units expected to be commissioned in a phased manner thereafter. The plant will manufacture a wide spectrum of advanced and value-added steel products aimed at strengthening domestic manufacturing capabilities, reducing reliance on imports, and supporting the ‘Viksit Bharat 2047’ vision.
In parallel with the project, AM/NS India has entered into two key Memorandums of Understanding (MoUs) with the Government of Andhra Pradesh. These agreements aim to establish a future-ready industrial talent ecosystem in collaboration with the New Age Makers’ Institute of Technology (NAMTECH), focusing on advanced manufacturing, materials innovation, and workforce development.
Prime Minister Narendra 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.”
Tadashi 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.”
Designed with a comprehensive environmental management framework, the project aims to minimise ecological impact, promote efficient resource use, and support biodiversity. The company also plans to expand its community development initiatives alongside the project, reinforcing its focus on inclusive growth and sustainable industrialisation.