State information and public relations minister said that the cabinet also approved the company’s request to establish a captive port with a 2.9 km waterfront at DL Puram village in Anakapalli district.
The Andhra Pradesh cabinet chaired by chief minister N Chandrababu Naidu on Thursday approved ArcelorMittal Nippon Steel India Limited’s (AMNSL) proposal to establish a steel plant in Anakapalli district with a production capacity of 17.8 million tonnes per annum in two phases, with an investment of around ₹1.35 lakh crore.
“In the first phase, a steel plant with a production capacity of 7.3 million tonnes per year will be set up with an investment of ₹55,964 crore, and production is targeted to commence by January 2029. This phase is expected to create 20,000 jobs,” state information and public relations minister K Parthasarathy told reporters after the cabinet meeting.
He said that the second phase aims to establish an additional steel plant with a production capacity of 10.5 million tonnes per year with an investment of ₹80,000 crore, expected to be completed by 2033, creating 35,000 jobs.
Parthasarathy also said that the cabinet also approved the company’s request to establish a captive port with a 2.9 km waterfront at DL Puram village in Anakapalli district.
“In order to facilitate this captive port, the government has decided to amend the clauses in the Kakinada Gateway Port Limited (KGPL) port concession agreement, in compliance with the Indian Ports Act, 1908,” he said.
The minister said that a captive port with a capacity of 20.5 million metric tons per annum will be constructed to support the first-phase steel plant, with an investment of ₹5,816 crore, expected to be completed by January 2029, generating 1,000 jobs. For the second-phase steel plant, another captive port will be developed subsequently at a cost of ₹5,380 crore creating 5,000 jobs.
“The chief minister has directed the officials to ensure there are no hurdles in the project’s construction so that it is completed on time,” the minister said.
The cabinet discussed the ongoing developments in the Visakhapatnam Steel Plant and reiterated its commitment to protecting the steel plant from privatisation. “Additionally, the cabinet agreed to convert the ₹2,400 crore electricity bill into equity, which has resulted in the steel plant achieving profits in March 2025,” he said.
The state government has also decided to replace central government security personnel with state police forces at the Visakhapatnam Steel Plant.
Parthasarathy said the cabinet approved a proposal to reduce bar license fees for three-star and higher-category hotels from ₹66 lakh to ₹25 lakh. “This move aims to promote the hospitality sector and create a favourable business environment in the state,” he said.
The cabinet also approved the establishment of a Special Purpose Vehicle (SPV) named “Jala Harathi Corporation”, a 100% government-owned company, to implement and complete the Polavaram-Banacherla Link Project, which aims to utilize floodwaters from the Godavari river and other irrigation projects.
“The project is expected to cost around ₹80,000 crore, with the goal of optimal utilization of water resources across all regions,” the minister added.