JSW Steel Ltd has broken ground on a new steel plant in Andhra Pradesh, launching a ₹16,350-crore investment that the company says will expand domestic steelmaking capacity while advancing its push into lower-carbon production.
The project, in the Rayalaseema region, will be built in two phases. The first will establish 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 investment to ₹16,350 crore, India’s largest steelmaker said in a statement on Friday.
“India is entering a significant phase of manufacturing and infrastructure expansion, and Andhra Pradesh is at the forefront of this growth. Steel will remain a critical enabler of this growth,” Jayant Acharya, joint managing director and chief executive of JSW Steel, said in the statement.
The investment comes as Steel accelerates capacity expansion to meet India’s growing manufacturing and infrastructure demand. In May, the company said it plans to double steelmaking capacity to about 80 mtpa by 2031 through brownfield expansion and joint ventures, a move aimed at placing India’s largest steelmaker among the world’s biggest producers.
The Rayalaseema plant will use electric arc furnace (EAF) technology, relying on recycled steel scrap and high-grade direct reduced iron (DRI) instead of the traditional blast furnace route. According to the company, the facility is being designed to improve energy efficiency, increase the use of renewable power and lower carbon emissions.
“The commencement of the Rayalaseema Steel Project reflects JSW’s confidence in Andhra Pradesh’s long-term industrial and economic potential,” Sajjan Jindal, chairman and managing director, JSW Group, said in the statement. He added that the company aims to support the state’s manufacturing-led growth while building globally competitive industrial capabilities.
The Rayalaseema project announcement comes a little over three months after Tata Steel commissioned its first electric arc furnace at Ludhiana, Punjab. The 0.75 mtpa plant was built at an investment of approximately ₹3,200 crore.
The commencement ceremony was attended by Andhra Pradesh chief minister N. , senior state government officials, and Jindal.
JSW said the project is expected to benefit from planned road, rail, power and water infrastructure, supporting logistics and industrial development in the region. The company also expects the investment to spur ancillary industries and logistics activity, strengthening Andhra Pradesh’s manufacturing base while supporting India’s demand through a lower-carbon production process.