Vizag: CM Naidu lays foundation for ₹1.35L Cr AM-NS plant at Nakkapalli; to generate 1L jobs

Visakhapatnam: Andhra Pradesh Chief Minister N. Chandrababu Naidu on Monday laid the foundation stone for the ArcelorMittal Nippon Steel (AM-NS) plant at Nakkapalli in Anakapalli district.

The project is expected to generate over one lakh jobs, drive the transformation of North Andhra into a major industrial hub, and mark the beginning of a ‘future Steel City’, further strengthening the state’s position as a leading investment destination.

Union Minister for Steel and Heavy Industries H. D. Kumaraswamy, Deputy Chief Minister Pawan Kalyan, IT Minister Nara Lokesh, and global steel industry leaders Lakshmi Mittal and Aditya Mittal attended the ceremony.

₹1.35 lakh crore investment to transform North Andhra

The integrated steel plant, one of India’s largest greenfield industrial projects, involves a total investment of ₹1.35 lakh crore. It will be developed in phases, with the first phase seeing an investment of ₹70,000 crore to establish a production capacity of 8.2 million tonnes per annum.

Once fully operational, the plant will scale up to 17.8 million tonnes, significantly boosting India’s steel output and supporting growing domestic demand.

The project is expected to generate over one lakh direct and indirect employment opportunities, providing a major economic boost to the region.

Infrastructure Push: Port, Roads, and Pipeline

As part of the project, key infrastructure components will be developed, including:

A captive port worth ₹11,198 crore

A four-lane road connecting the plant to national highways

A dedicated pipeline for raw material transportation

The first phase of production is targeted between 2028 and early 2029, with major blast furnace installations expected by 2030.

‘Steel City’ vision and industrial growth

Chief Minister Chandrababu Naidu said the project goes beyond industrial development and will anchor the transformation of North Andhra into a major steel and industrial hub.

He noted that Andhra Pradesh is witnessing rapid growth across sectors such as data centres, manufacturing, food processing, and tourism. He highlighted that a Google data centre is also set to come up in Visakhapatnam, attracting nearly $15 billion in foreign investment, one of the largest such investments in the country.

Within 20 months of the current government taking office, the state has attracted investments worth ₹20.35 lakh crore, he added.

Centre backs mega steel push

Prime Minister Narendra Modi hailed the project as a major milestone in Andhra Pradesh’s development journey and said it would strengthen India’s position as a global steel manufacturing leader.

He noted that the project aligns with national initiatives like Make in India and Atmanirbhar Bharat, and will create significant opportunities for youth while boosting industrial innovation.

Union Minister Kumaraswamy emphasized that such large-scale projects are crucial to achieving India’s long-term steel capacity targets and modernising the country’s steel ecosystem.

Environment-friendly and employment-focused

Deputy Chief Minister Pawan Kalyan said the project is being developed with a focus on low emissions, highlighting the government’s commitment to environmentally sustainable industrialisation.

He added that Andhra Pradesh is currently attracting nearly 25 percent of total investments flowing into the country.

‘CBN brand’ and fast-track clearances

IT Minister Nara Lokesh recalled early discussions with Aditya Mittal before 2019 and said the project gained momentum after the coalition government assumed power in 2024.

He noted that the state government expedited land allocation and approvals, attributing the project’s materialisation to the credibility and governance associated with the “CBN brand.”

Global steel giant’s vote of confidence

Lakshmi Mittal described the project as one of the most significant milestones in his 50-year career in the steel industry.

He said the plant would be among the most competitive and modern steel facilities in India, benefiting from its coastal location and strong connectivity to iron ore resources via slurry pipelines.

“This project reflects our long-term commitment to India and its journey towards Viksit Bharat,” he said.

MoUs to build skilled workforce

On the sidelines of the event, ArcelorMittal Nippon Steel India signed two key Memorandums of Understanding (MoUs) with the Andhra Pradesh government.

The agreements aim to establish a future-ready industrial talent ecosystem in collaboration with NAMTECH (New Age Makers’ Institute of Technology), focusing on advanced manufacturing, materials innovation, and workforce development.

A defining industrial milestone

The AM-NS steel plant is expected to play a transformative role in shaping the Visakhapatnam Economic Region into a hub for steel, ports, data centres, and knowledge industries.

With strong backing from both the state and central governments, the project stands as one of the largest industrial investments in India, signalling rising global confidence in Andhra Pradesh’s economic potential, officials said.