Andhra steel project to create one lakh jobs, boost capacity: PM Modi

Prime Minister Narendra Modi on Monday described the Rs 1.35 lakh crore ArcelorMittal Nippon Steel India (AM/NS India) project as a “world-class integrated steel plant” that will strengthen India’s steelmaking capabilities.

Andhra Pradesh chief minister N Chandrababu Naidu laid the foundation for the project at Nakkapalli mandal in Anakapalli district. Union steel and heavy industries minister HD Kumaraswamy, along with global steel industry leaders Lakshmi Mittal and Aditya Mittal, were present at the event.

“This is a world-class integrated steel plant that will further strengthen India’s steelmaking capabilities. It marks a major milestone in Andhra Pradesh’s development journey and will create opportunities for youth while positioning the state as a hub of industrial innovation,” an official release, quoting PM Modi said.

The release added that the project will also strengthen India’s position as a global steel manufacturing leader.

The AM/NS India project will be implemented in phases. Phase 1 involves an investment of Rs 70,000 crore to establish an 8.2 million tonne per annum capacity, making it India’s largest greenfield steel plant. The facility is expected to begin production by the first quarter of 2029.

The plant is expected to generate around one lakh direct and indirect employment opportunities, providing a boost to livelihoods and regional economic growth.

Union minister for heavy industries and steel HD Kumaraswamy said the project reflects growing global confidence in India.

Addressing a meeting after the foundation-laying ceremony, he credited chief minister N Chandrababu Naidu’s approach and administrative capacity for positioning Andhra Pradesh as an investment destination.

“I appreciate the Andhra Pradesh government’s strong push towards industrial growth, and I believe the upcoming integrated steel plant reflects the growing global confidence in India,” he said.

According to Kumaraswamy, the selection of the Nakkapalli region highlights the state’s strategic planning, infrastructure readiness and governance, supported by the Centre.

He said the central government is focusing on increasing domestic steel capacity, promoting value-added production and reducing import dependence as part of its Viksit Bharat 2047 vision.

He added that the Centre is prioritising infrastructure alignment, raw material security and policy support to keep the steel sector globally competitive.

On local industry concerns, Kumaraswamy said the revival of Rashtriya Ispat Nigam Limited (RINL) remains a priority. He noted that more than Rs 11,440 crore in financial support has been provided to stabilise the Visakhapatnam Steel Plant.

“Sustained efforts have been made to improve efficiency, restore production capacity and rebuild confidence among employees and stakeholders, reflecting coordinated efforts by the Centre and the state.”

He reiterated that the government is committed to strengthening RINL and restoring its role in India’s steel sector.

Kumaraswamy said the AM/NS India project will support regional development, generate employment, strengthen Micro, Small and Medium Enterprises (MSMEs), and increase economic activity.

He added that the project will contribute to Andhra Pradesh’s industrial growth and India’s economic progress.

Earlier, the Union minister visited the Visakhapatnam Steel Plant and reviewed the operations of RINL.

(With inputs from agencies)