AM/NS Andhra Steel Plant Set to Start with RS 1.5 Trillion Investment

AM/NS India, a joint venture between ArcelorMittal and Nippon Steel, will officially begin construction on India’s largest greenfield steel plant in Andhra Pradesh on March 23. Located near Visakhapatnam port, the plant will initially add 8.2 million tonnes of capacity in the first phase, with a Rs 70,000 crore investment. The state government has allotted 2,200 acres for the project.

AM/NS finalized the land deal in September 2024, with the process moving swiftly, as the land request was submitted in August and the allotment granted by November, a timeline that AM/NS India CEO Dilip Oommen stated as “world-class execution.” Oommen emphasized the company’s desire to cater to markets in eastern and southern India.

Also Read: Finance Minister Announces 25% Boost in India’s LPG Production

The first phase of the project will focus on flat steel products and downstream lines aimed at reducing imports. The initial units are expected to be operational by 2028 or early 2029, with the entire project nearing completion by the end of 2030.

The company plans additional expansions, including an integrated steel plant in Odisha and an expansion of its Hazira plant in Gujarat from 9 million tonnes to 15 million tonnes.

State authorities have been instrumental in facilitating the project, including resolving challenges around laying pipelines for iron ore transportation. Furthermore, AM/NS India has initiated the rehabilitation of 673 affected families, providing housing support and construction materials during the process.

Key Data & Highlights:

• Odisha contributes 14 percent to India’s mining GVA.
• Iron ore production reached 155 million tonnes in FY2025.
• Top 5 states contribute over 57 percent of total mining output.
• Gujarat (12.9 percent), Maharashtra (12.1 percent), Rajasthan (9.6 percent), Madhya Pradesh (8.6 percent).
• Eastern India emerging as key mining and industrial growth hub.