ArcelorMittal Nippon Steel Shifts Focus to Andhra Pradesh as Odisha Project Stalls

Steel behemoth ArcelorMittal Nippon Steel India (AMNS India) is gaining momentum to set up a ₹55,964-crore greenfield steel plant in Andhra Pradesh, while its highly publicised 24 million tonnes per annum (mtpa) project in Odisha has encountered land acquisition problems and bureaucratic delays.

The joint venture between ArcelorMittal and Japan’s Nippon Steel, AMNS India, had in March 2021 signed a memorandum of understanding with the Odisha government for the ₹1.02-lakh-crore project. Penetration and vesting of land rights in the Badatubi village, where 383 acres were identified, are still pending. Odisha’s slow progress prompted the company to redirect its focus to neighbouring Andhra Pradesh.

In sharp contrast, Andhra Pradesh has swiftly moved to accommodate the steel giant. According to Nara Lokesh, AP’s Minister for IT and Industries, the provisional land allotment was completed in just four months a record, he claimed. “We’re rolling out incentives under our new industrial policies and are committed to supporting AMNS in executing the project swiftly,” he said.

Andhra plant Phase 1, to be completed by January 2029, will be capable of 7.3 mtpa with 20,000 employment opportunities over 2,200 acres. Phase 2, to be completed by 2033, will increase capacity to 10.5 mtpa with total investment going up to ₹80,000 crore and land requirements spread over 3,800 acres.

The location for the project was chosen due to its proximity to customers and availability of raw materials. AMNS has also proposed building five port berths by 2029 at ₹5,816 crore, expanding to 12 berths (including energy docks) by 2033 with an additional ₹5,382-crore investment.

AMNS India’s broader strategy links the Andhra project with ongoing expansion at its Hazira plant in Gujarat, which is on track to reach 15 mtpa by 2026. The company expects its Phase 1 expansion to triple EBITDA to $2.5 billion and boost cash flows significantly.

Only the Andhra project was highlighted in a recent investor call, signaling its priority in AMNS India’s growth roadmap.