VIJAYAWADA: An integrated steel plant with a capacity of 24 million metric tonnes per annum is set to be established at Nakkapalle in Anakapalle district with an investment of Rs 1.5 lakh crore. AM/NS India, a joint venture of ArcelorMittal and Japan’s Nippon Steel, will set up the plant. It is expected to create nearly 70,000 direct and indirect jobs. A formal announcement is likely to be made after the State Cabinet, scheduled to convene next week, discusses the proposal. In a post on X, the TDP termed the project the “biggest investment in India.”
According to a document accessed by The New Indian Express (TNIE), besides the integrated steel plant, a proposal has been submitted for a co-terminus captive port with a total of 17 berths. The project will be undertaken in two phases with an investment of Rs 11,198 crore and is expected to create a total of 8,000 jobs. In the first phase, five berths will be constructed with a total handling capacity of 20.5 MMPTA.
According to official sources, the proposal to establish a steel plant is beneficial for Andhra Pradesh, as the steel sector ranks only next to textiles in providing jobs. They explained that representatives of AM/NS contacted IT and HRD Minister Nara Lokesh a couple of months ago and proposed to set up the steel plant at Nakkapalle. They emphasized that the location is strategic, considering factors such as proximity to the coast, road connectivity via NH-16, rail links to the Chennai Grand Trunk, and adequate water sources from the Polavaram Left Main Canal. Sources noted that the steel plant will be set up in two phases, with the first phase producing 7.3 million metric tonnes of stainless steel per annum and an expansion to 24 million metric tonnes per annum in the second phase.
While AM/NS sought more than 4,500 acres of land for the project, the State government has offered to immediately provide 1,800 acres of land adjacent to the Bulk Drug Park in Nakkapalle, as it is readily available. The first phase of the steel plant is expected to be completed by January 2029, and the second phase by 2033.
Official sources highlighted that AM/NS India already has an iron slurry pipeline between Kirandul in Chhattisgarh and Visakhapatnam Port, which is used for the transportation of iron ore. “It has been proposed to extend the same pipeline to the steel plant at Nakkapalle. Furthermore, AM/NS India has sought government assistance in procuring iron ore,” sources explained. When contacted by TNIE, insiders maintained that there would be no conflict of interest between the proposed steel plant by AM/NS and the existing Visakhapatnam Steel Plant, noting that while AM/NS will produce stainless steel, VSP produces steel rods.
