Andhra Pradesh Chief Minister N. Chandrababu Naidu on Friday launched the construction of the JSW Rayalaseema Integrated Steel Plant at Sunnapurallapalli and Peddadanluru villages in Kadapa district.
JSW Andhra Pradesh Steel Limited will develop the integrated steel plant in two phases across 1,100 acres with a total investment of Rs 16,350 crore, according to an official statement accessed by PTI.
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Phase 1 of the project will involve an investment of Rs 4,500 crore, while Phase 2 will see an additional investment of Rs 11,850 crore, taking the plant's capacity to two million tonnes per annum (MTPA).
The company aims to commence commercial production by March 2028.
The integrated steel plant has been designed as a modern green steel facility and will use scrap-based Electric Arc Furnace (EAF) technology, significantly reducing carbon emissions.
"The project was originally approved in 2019 and witnessed foundation ceremonies in 2019 and again in 2023," says the press release.
It was revived after the formation of the TDP-led coalition government in 2024 and its sustained engagement with JSW.
The government has also made progress on critical external infrastructure for the project. A dedicated water supply system is being developed, connectivity to National Highway 67 (NH-67) is under way, and authorities are pursuing a 12-km railway link connecting the plant to Muddanuru Railway Station through RITES under the PM Gati Shakti initiative.
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The project is expected to generate thousands of direct and indirect jobs, promote ancillary industries across Rayalaseema, strengthen Andhra Pradesh's industrial base and help the state emerge as one of India's leading steel-producing hubs.