CM Chandrababu Launches Rs 16,350-Crore JSW Steel Plant in Kadapa

Andhra Pradesh Chief Minister N. Chandrababu Naidu on Friday launched the construction of the JSW Rayalaseema Integrated Steel Plant in YSR Kadapa district, calling it a landmark project that would transform Rayalaseema into a major industrial destination and generate large-scale employment opportunities for local youth.

The steel plant, being developed by JSW Andhra Pradesh Steel Limited , will be established over nearly 1,100 acres in the Sunnapurallapalle and Peddadandluru villages of Kadapa district. The project will be implemented in two phases with a total investment of Rs 16,350 crore . The first phase will involve an investment of Rs 4,500 crore, while the second phase will see an additional investment of Rs 11,850 crore. Once fully operational, the plant will have an annual production capacity of 2 million tonnes . Commercial production is targeted to commence by March 2028 .

Designed as a green steel facility , the project will utilise scrap-based electric arc furnace technology powered by renewable energy, significantly reducing carbon emissions and promoting environmentally sustainable steel production.

The state government said the project, which had received approval earlier, was revived after the TDP-led coalition government assumed office in 2024. According to the government, continuous engagement with the JSW Group and efforts to resolve pending issues helped restart the project and move it towards execution.

To support the facility, the government is developing key infrastructure, including a dedicated water supply system, improved connectivity through National Highway-67, and a 12-km railway link connecting the plant with Muddanur railway station under the PM Gati Shakti initiative.

Addressing a public meeting after the launch, Naidu said Rayalaseema had emerged as a hub for horticulture, mineral resources and renewable energy. He noted that globally recognised manufacturing brands were already operating in the region and announced that sectors such as aerospace, defence manufacturing, drones, electronics, automobiles, renewable energy and food processing would attract further investments in the coming years. He also revealed that JSW had shown interest in investing in the proposed Space City and Drone City projects in Tirupati district.

The Chief Minister said the government was committed to ensuring that local resources benefited the region and that industries created employment opportunities for local youth. He expressed confidence that the steel plant would generate thousands of direct and indirect jobs while encouraging the growth of ancillary industries across Rayalaseema.

Naidu also announced plans to establish a Global Horticulture Hub in Madanapalle and develop Gandikota into an international tourism destination. He asserted that the coalition government had accelerated industrial growth and infrastructure development since coming to power, while criticising the previous YSRCP government for failing to advance key projects.

Referring to the financial challenges faced by the Visakhapatnam Steel Plant , Naidu said the Centre had extended substantial financial support to help stabilise the public sector unit. Expressing optimism about the Kadapa project, he said the steel plant would bring significant economic and social change to the region and pledged to return for its inauguration once production begins.