Andhra Pradesh Chief Minister N. Chandrababu Naidu has laid the foundation stone for the ₹16,350 crore JSW Rayalaseema Integrated Steel Plant at Sunnapurallapalle and Peddadanluru villages in Jammalamadugu of Kadapa district, marking a major milestone in the state’s industrial development. The long-awaited project is expected to transform Rayalaseema into a key steel manufacturing hub while generating large-scale employment and attracting ancillary industries.
The integrated steel plant will be developed by JSW Andhra Pradesh Steel Limited over nearly 1,100 acres using scrap-based Electric Arc Furnace (EAF) technology powered by renewable energy, making it one of India’s significant green steel projects. The state government has facilitated key infrastructure for the project, including the allocation of 2 TMC of water from the Gandikota reservoir, 268 MW of power, and supporting road and rail connectivity.
The project will be implemented in phases. The initial phase will establish a production capacity of 1 million tonnes per annum (MTPA), which will subsequently be expanded to 2 MTPA in the second phase. Commercial production is targeted to commence by 2028, with the project expected to create thousands of direct and indirect employment opportunities while stimulating the growth of downstream industries in the region.
The Rayalaseema Steel Plant has witnessed nearly two decades of delays following multiple proposals and ownership changes. After the present state government revived the project through policy approvals and transferred all statutory clearances to JSW Andhra Pradesh Steel Limited, construction activities have now officially commenced, paving the way for full-scale development.
The Andhra Pradesh government expects the integrated steel facility to serve as a catalyst for industrialisation in Rayalaseema by boosting manufacturing, strengthening the regional supply chain, and enhancing the state’s steel production capacity. The project is also aligned with the government’s broader strategy of promoting sustainable industrial growth through low-carbon steel manufacturing technologies.
