Andhra Pradesh Chief Minister N. Chandrababu Naidu on Friday launched the construction work for the JSW Rayalaseema Integrated Steel Plant in Kadapa district, as per an Economic Times report.
According to the state government, the integrated steel plant will be built over 1,100 acres with a total investment of ₹36,350 crore. The project is coming up at Sunnapurallapalli and Peddadanluru villages and will be developed by JSW Andhra Pradesh Steel Limited.
The project has been planned in two phases. The first phase will involve an investment of ₹24,500 crore, followed by a second phase with an investment of ₹11,850 crore.
Once both phases are completed, the plant will have a production capacity of 2 million tonnes per annum (2 MTPA). The government has set March 2028 as the target for the start of commercial production.
The state government said supporting infrastructure required for the project is being developed alongside the plant. A dedicated water supply system is under implementation, while road connectivity to National Highway 67 is being executed.
A 12-kilometre railway line connecting the project site to Muddanuru Railway Station is also being pursued through RITES under the PM Gati Shakti initiative to support future movement of raw materials and finished products.
The facility has been designed as a green steel plant and will use scrap-based Electric Arc Furnace (EAF) technology instead of the conventional blast furnace route.
The process will be powered by renewable energy. According to the government, this technology is expected to reduce carbon emissions compared with traditional steel production methods.
The Kadapa steel plant was first approved in 2019, and foundation ceremonies were held in 2019 and again in 2023. However, construction work did not proceed beyond that stage.
The government said the project was revived after the TDP-led coalition came to power in 2024, following discussions with JSW. It added that approvals and external infrastructure works were taken forward to enable the start of construction.
With construction now underway, the Kadapa steel plant enters the execution phase. The project is planned for completion in two phases, with production expected to start by March 2028.
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Published on: Jul 3, 2026, 5:36 PM IST
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