Chief Minister N Chandrababu Naidu has formally launched full-scale construction of the Rs 16,350 crore JSW Rayalaseema Integrated Steel Plant at Sunnapurallapalle and Peddadanluru villages in Jammalamadugu mandal, bringing an end to nearly two decades of political promises and delayed starts.
The project has a complex history spanning five foundation-laying ceremonies under three chief ministers since 2007, when the original Brahmani Steels project was initiated. That initiative collapsed following illegal mining scandals and CBI investigations. Subsequent attempts under different state governments saw the project renamed, MoUs reshuffled and basic infrastructure initiated but stalled due to pending contractor payments.
The current revival was fast-tracked under the NDA government through GO No. 131. The state has transferred all statutory approvals to JSW Andhra Pradesh Steel Limited, allotted 1,100 acres at Rs 5 lakh per acre and assured 2 TMC of water from the Gandikota reservoir along with 268 MW of power from the Jammalamadugu substation.
The plant will use scrap-based Electric Arc Furnace technology powered entirely by renewable energy. Implementation will proceed in two phases — Phase I involves Rs 4,500 crore to establish one million tonnes per annum capacity, creating around 1,000 direct jobs, with commercial production targeted by March 2028. Phase II adds Rs 11,850 crore to expand capacity to two million tonnes per annum and generate another 1,500 direct jobs.
