After formation of TDP-led coilation government in the state, several investors from India and overseas are showing interest to invest in the state in a big way. According to sources, AM/NS India, a joint venture of ArcelorMittal and Japan’s Nippon Steel, is keen to invest Rs 1.40 lakh crore in AP. ArcelorMittal Nippon Steel India is planning to set up an integrated steel plant with a production capacity of 17.8 million metric tons in Anakapalle district.
If the project goes ahead, it will be one of the largest greenfield projects to be set up in recent times. As part of the project, a blast furnace steel plant with a production capacity of 7.3 million metric tons per year will be set up with an investment of Rs 80,000 crore in the first phase.
It is learnt that the company has sought 2,600 acres of land for the first phase. In the second phase of the project, the production capacity will be increased by another 10.5 million metric tons with an investment of Rs 60,000 crore. For this, the company management has requested an additional 2,000 acres of land.
However, it is learned that about 1,800 acres of land is available next to the Nakkapalli Bulk Drug Park. Government sources have suggested that they should be examined. ArcelorMittal Nippon Steel India hopes to increase its steel production capacity to 40 million metric tons by 2035.
As part of this expansion plan, the company management says that it is exploring coastal areas for setting up a plant. For this, Management sources say that they are examining issues such as the availability of land and port facilities for setting up a steel plant in Andhra Pradesh and Odisha. On the other hand, in a Zoom call held between ArcelorMittal CEO Aditya Mittal and AP IT Minister Nara Lokesh in July, an agreement was reached towards setting up this steel project, according to the Economic Times in its article.