JSW Steel Ltd has officially commenced full-scale construction activities for its integrated steel project in Andhra Pradesh's Rayalaseema region, with Chief Minister N. Chandrababu Naidu formally launching the project works on July 3. As reported by Business Standard, the company announced the commencement on Friday, with the project being developed by JSW Rayalaseema Steel, a 100% subsidiary of JSW Steel. The facility will be built across 1,100 acres in Sunnapurallapalli and Peddadanluru villages in YSR Kadapa district. The project has been under discussion for several years, receiving approval in 2019 and witnessing foundation ceremonies in both 2019 and 2023, but construction activities did not progress beyond preliminary stages until the formation of the new state government in 2024.
The project will be executed in two phases, with the first establishing a 1 million tonne per annum (mtpa) integrated steel plant at a cost of ₹4,500 crore. A second phase involving an investment of up to ₹11,850 crore will double capacity to 2 mtpa, taking the total planned investment to ₹16,350 crore. According to Business Standard, the company described the Rayalaseema investment as one of the largest industrial projects in the region, reflecting JSW's commitment to manufacturing growth and industrial development in the state. Commercial production from the facility is targeted to commence by March 2028, with the first phase providing employment to 1,000 people. The second phase, which will be completed in two years, will provide jobs to 1,500 people.
The Kadapa steel plant has been designed as a green steel plant utilizing scrap-based Electric Arc Furnace (EAF) technology powered by renewable energy sources. As reported by Business Standard, the facility will manufacture structural steel products intended for infrastructure- and urbanisation-related demand. The construction of boundary walls, office buildings and guest houses has already been completed at the project site, with a 2,000 kilolitre water sump currently under construction. A proposed 12-kilometre railway link connecting the facility to Muddanuru Railway Station is being pursued through RITES under the PM Gati Shakti programme. The new Electric Arc Furnace technology will be used instead of traditional blast furnace, significantly reducing carbon emissions compared with conventional steelmaking methods. JSW NeoEnergy will also establish a 400 MW solar and wind power project worth ₹2,400 crore in connection with the steel plant, further enhancing the facility's green credentials.
The project launch was attended by Andhra Pradesh Chief Minister N. Chandrababu Naidu, senior state government officials, public representatives, local stakeholders, and JSW Group leadership led by Chairman and Managing Director Sajjan Jindal. According to Business Standard, Sajjan Jindal stated that the commencement reflects JSW's confidence in Andhra Pradesh's long-term industrial and economic potential. He highlighted that under CM Naidu's leadership, the state is creating a strong ecosystem for manufacturing, infrastructure and investment-led growth, with JSW proud to partner in this journey. The Chief Minister emphasized that Sajjan Jindal of JSW Group is ready to make more large-scale investments in the state, noting that they had promised to set up a plant in Rayalaseema and have fulfilled their commitment. The company emphasized that the facility will be built around Electric Arc Furnace (EAF) technology, using recycled steel scrap and high-grade Direct Reduced Iron (DRI) as key raw materials to manufacture structural steel with a lower carbon footprint.
The investment is expected to support the development of ancillary industries, logistics infrastructure and employment in the Rayalaseema region, as reported by Business Standard. The project represents one of the largest industrial investments in recent years for Rayalaseema and is expected to contribute to broader economic development in the region. The development is anticipated to create substantial employment opportunities across the region, with the project expected to support a network of ancillary industries, logistics providers, engineering services and other businesses linked to the steel value chain. For Andhra Pradesh, it adds to ongoing efforts to attract large-scale manufacturing investments and expand industrial capacity. This expansion aligns with JSW Steel's broader strategy to double steelmaking capacity to about 80 mtpa by 2031 through brownfield expansion and joint ventures, positioning India's largest steelmaker among the world's biggest producers. The steel plant, which is being built with an annual production capacity of 2 million tonnes, is aimed to be completed in two phases, with the first phase of production targeted to start by April 2029.
