ArcelorMittal Nippon Steel India (AM/NS India) has taken a major step toward expanding its footprint in India by securing land in Andhra Pradesh to build a greenfield integrated steel plant. The initial acquisition, made public on March 28, 2025, marks the beginning of a highly ambitious project valued at approximately ₹1.4 lakh crore. The plant’s first phase will deliver a production capacity of 7.3 million tonnes per annum (Mtpa), with plans to expand to a total capacity of 17.8 Mtpa by 2033 through a second investment phase.
Located in the Anakapalli district near Rajayapeta and Nakkapalli, the site benefits from close proximity to a planned captive port and integrated transport network, which includes a dedicated 2.9 km waterfront jetty sanctioned by the Andhra Pradesh cabinet. These infrastructure synergies are expected to significantly boost logistics efficiency and import-export capabilities.
The project aligns with India’s national strategy to raise crude steel production capacity to 300 Mtpa by 2030. AM/NS India-a joint venture with ArcelorMittal holding 60 per cent and Nippon Steel 40 per cent—is simultaneously expanding the capacity of its Hazira plant in Gujarat from 9 Mtpa to 15 Mtpa and exploring another site in Odisha.
However, the expansion faces challenges related to raw material access. AM/NS India has raised concerns over India’s import restrictions on low-ash metallurgical coke-an essential input for steelmaking-citing potential delays and production hurdles.
Reddit users have noted the project’s strategic scale, comparing its 7.3 Mtpa first phase to around 10 per cent of India’s total current steel capacity:
“Total steel production of India is 179.5 MTPA… capacity of this single plant is 17.8 MTPA”
In summary, AM/NS India’s greenfield venture represents a transformative investment in India’s steel and infrastructure landscape. By integrating large-scale capacity, transport logistics, and coastal port access, the project will create thousands of jobs and elevate Andhra Pradesh’s industrial positioning-while navigating policy and supply chain complexities.
