JSW Steel kicks off ₹16,350 crore low-carbon steel project in Andhra Pradesh
JSW Steel Ltd has laid the foundation stone of a new steel plant in Andhra Pradesh and ₹The 16,350-crore investment, which the company says will expand domestic steel production capacity while also accelerating the move towards lower-carbon production.
The project in the Rayalaseema region will be constructed in two phases. The first of these will establish a 1 million tons per annum (mtpa) integrated steel plant for 2,500 TL. ₹4,500 crore. The second phase, which includes investments up to ₹11,850 crore will increase the capacity to 2 mtp per annum and make the total investment ₹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 continue to be a critical enabler of this growth,” Jayant Acharya, joint managing director and managing director of JSW Steel, said in a statement.
The investment comes as JSW Steel accelerates capacity expansion to meet India’s growing production and infrastructure demand. In May, the company said it plans to double its steel production capacity to around 80 mtpa by 2031 through brownfield expansion and joint ventures, a move aimed at placing India’s largest steel producer among the world’s largest producers.
The Rayalaseema plant will use electric arc furnace (EAF) technology based on recycled steel scrap and high-quality direct reduced iron (DRI) instead of the traditional blast furnace method. According to the company, the facility is designed to improve energy efficiency, increase the use of renewable energy and reduce carbon emissions.
“The commencement of the Rayalaseema Steel Project reflects JSW’s confidence in the long-term industrial and economic potential of Andhra Pradesh,” JSW Group chairman and managing director Sajjan Jindal said in a statement. He added that the company aims to support the state’s production-oriented growth while developing globally competitive industrial capabilities.
The Rayalaseema project announcement comes a little over three months after Tata Steel commissioned its first electric arc furnace in Ludhiana, Punjab. The 0.75 mtpa facility was built with an investment of approximately 200 million TL. ₹3,200 crore.
Andhra Pradesh chief minister N. Chandrababu Naidu, senior state government officials and Jindal attended the graduation ceremony.
JSW said the project is expected to benefit from the road, rail, energy and water infrastructure planned to support logistics and industrial development in the region. The company also expects the investment to strengthen Andhra Pradesh’s manufacturing base by promoting ancillary industries and logistics activities, while also supporting India’s steel demand through a lower-carbon production process.
