Andhra Pradesh Clears 250 Acres for Dalmia Cement’s Kadapa Expansion

Andhra Pradesh has approved 250 acres of additional land for the expansion of Dalmia Cement (Bharat) Ltd’s integrated cement facility in YSR Kadapa district, paving the way for a significant increase in planned production capacity.

The land will be allotted for the company’s facility spread across Chinnakommerla and Dugganpalli villages in Mylavaram mandal. The decision follows a recommendation from the State Investment Promotion Board and will be implemented under the state’s ‘LA for Others’ policy on an actual-cost basis.

As part of the approval, the state government has also revised the earlier project sanction issued in March 2025. The planned cement capacity after expansion has been increased from 7.23 million tonnes per annum to 9.60 million tonnes per annum.

The project is already moving into its implementation phase. According to the latest schedule, statutory approvals were planned during June and July 2026, followed by construction activity through December 2027. Equipment installation is scheduled between November 2026 and November 2027, while trial production is expected towards the end of 2027. Commercial operations are targeted for January 2028.

The expansion will increase the scale of cement manufacturing in the Kadapa region, but it will also require supporting infrastructure as construction progresses. Cement production involves significant requirements for limestone, energy, water and transportation. The movement of raw materials and finished cement is therefore expected to remain an important consideration around the expanded facility.

Earlier project documentation has covered additional clinker, cement and waste-heat-recovery capacity at the site. The company has also indicated that the expanded facility will eventually have clinker capacity of 6.1 million tonnes per annum and cement capacity of 9.6 million tonnes per annum, with commissioning targeted by the third quarter of Financial Year 2027–28.

The state has also directed vendors and suppliers associated with the project to register for Andhra Pradesh GST, citing the destination-based nature of the tax.

For Dalmia Cement, the Kadapa expansion adds further capacity to its manufacturing footprint. For the region, the next stage will involve construction, equipment installation and supporting infrastructure before commercial production begins.