en.Wedoany.com Reported - Indian steel company JSW Steel Limited officially launched the construction of an integrated steel plant in the Rayalaseema region of Andhra Pradesh on July 3, 2026. The project, with a total investment of INR 163.5 billion (approximately EUR 1.5 billion), will be built in two phases with a designed annual capacity of 2 million tons, and is expected to achieve commercial production by March 2028. Andhra Pradesh Chief Minister N. Chandrababu Naidu and JSW Group Chairman and Managing Director Sajjan Jindal jointly attended the groundbreaking ceremony.
The project is being implemented by JSW Steel's wholly-owned subsidiary, JSW Rayalaseema Steel Ltd, on a 1,100-acre site in Sunnapurallapalle village, Jammalamadugu mandal, Kadapa district. The first phase involves an investment of INR 45 billion to build an integrated steel plant with an annual capacity of 1 million tons, utilizing low-carbon electric arc furnace technology. The second phase plans an additional investment of INR 118.5 billion to double the capacity to 2 million tons per year.
The plant is positioned as a green steel facility, employing electric arc furnace technology using scrap steel as raw material and powered by renewable energy. JSW Steel Joint Managing Director and CEO Jayant Acharya stated that the investment aligns with the company's long-term strategy to build future-ready manufacturing assets. JSW Group Chairman Sajjan Jindal said the project reflects JSW's confidence in the long-term industrial and economic potential of Andhra Pradesh.
The project was initially approved in 2019, with groundbreaking ceremonies held in 2019 and 2023, but failed to make substantial progress. After the new government took office in Andhra Pradesh in 2024, the project was revived through continuous communication with JSW. The government is advancing key external infrastructure supporting the project, including dedicated water supply facilities, a road connecting to National Highway NH-67, and a 12-kilometer railway branch line being developed through RITES to link the plant to Muddanuru railway station. The project is expected to create thousands of direct and indirect jobs. JSW Group also plans to develop a 1,166-acre industrial park in Vizianagaram district with an investment of INR 5.31 billion.
