AP Aims at Major Steel Hub Status: Naidu
vijayawada:Chief Minister N. Chandrababu Naidu on Tuesday directed officials to prepare a comprehensive action plan to fully exploit Andhra Pradesh’s vast iron ore reserves.
He described them as a “permanent asset” that could create significant income and employment opportunities.
Reviewing the performance of the mines and geology department, the CM said the state’s estimated iron ore reserves of 1,938 million tonnes provide tremendous scope for industrial expansion and economic growth.
Minister Kollu Ravindra, government advisor Satish Reddy, principal mines secretary Mukesh Meena, APMDC vice-chairman and managing director Praveen Kumar attended the meeting.
Naidu stated that ArcelorMittal Nippon India has established a steel plant with a capacity of 17.8 million mt, while JSW is planning a large steel plant in Rayalaseema. Combined steel production capacity was expected to exceed 20 million metric tons annually by 2035.
Considering the expected increase in demand, the CM instructed officials to create a road map to expand steel production capacity in the state. He instructed the authorities to allocate iron ore blocks other than those already allocated to eligible companies. Many of the total 17 iron ore blocks in the state have not been allocated yet.
Naidu has set ambitious production targets of 30 million metric tons of iron ore per year by 2030 and 113 million metric tons by 2035. He observed that iron ore consumption may increase fourfold in the coming years and said that the mineral availability offers a huge opportunity for Andhra Pradesh to emerge as a steel manufacturing hub.
According to estimates submitted during the review, the sector is expected to attract investments worth Rs 1.90 lakh crore and create around 1.52 lakh jobs.
The CM also instructed officials to formulate a special policy to process low-grade magnetite ore, speed up mineral exploration activities and ensure speedy approval of mining leases.
Officials informed the CM that the mining department has surpassed the revenue target in 2025-26, achieving 108 per cent of the projected revenue. The department earned a revenue of ₹ 3,416 crore during the financial year, an increase of 32 per cent over the previous year. The growth rate is higher than that recorded in key mineral-rich states such as Odisha, Karnataka, Chhattisgarh, Rajasthan and Madhya Pradesh, officials said.
The state has set a revenue target of Rs 4,650 crore for 2026-27; This represents an estimated growth of 36 percent over the previous fiscal year. Officials said that measures such as operationalizing mining leases, increasing limestone production and granting new leases were taken to increase mining revenues.
