AM/NS to launch Rs 1.4 trillion steel project in Andhra Pradesh

05 Nov 2024 CW Team

In the initial phase of the project, ArcelorMittal Nippon Steel plans to establish a blast furnace steel plant with a capacity of 7.3 million metric tonnes per annum (MMTPA) and an initial investment of Rs 800 billion. The company has requested 2,600 acre of land for this phase.

In the subsequent phase, AM/NS intends to increase capacity by an additional 10.5 MMTPA with an investment of Rs 600 billion and has sought an extra 2,000 acre of land. Approximately 1,800 acre of land is readily available adjacent to the Nakkapalli bulk drug park and can be provided.

Manoranjan Kumar, chief of ports operations and development at AM/NS, stated that the company plans to achieve a steel manufacturing capacity of 40 MMTPA by 2035. He mentioned that, as part of their expansion strategy, they were exploring coastal locations in Andhra Pradesh and Odisha. Kumar highlighted that the primary considerations for establishing a steel project are the availability of land and port facilities, both of which Nakkapalli meets.

A key requirement for AM/NS at Nakkapalli is a captive jetty. Kumar noted that having a jetty would facilitate the sourcing of raw materials globally at competitive prices, which is crucial for their expansion strategy. He emphasised that the site at Nakkapalli is particularly promising in this regard.

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