The project is to set up a 2 Million Tonne Steel Plant by JSW Rayalaseema Steel Ltd, a wholly-owned subsidiary of JSW Steel Ltd., in phases.
The 1st phase, with a planned investment of Rs 4,500 crore, would be a 1-MTPA Integrated Steel Plant to manufacture low carbon emission steel products. The 2nd phase, with an additional planned investment of upto Rs 11,850 crore, will expand capacity to 2 MTPA, taking the total project investment upto Rs 16,350 crore, the company said in a statement.
Strategically located in the Rayalaseema region, the project is supported by planned infrastructure including road, rail, power and water connectivity, enabling efficient logistics and long-term industrial development.
The Rayalaseema Steel project is expected to catalyse the development of ancillary industries, logistics infrastructure, and broader economic activity across the Rayalaseema region. Once developed, it will further strengthen Andhra Pradesh’s industrial ecosystem and contribute to the state’s vision of attracting large-scale investments across manufacturing sectors.
The project commencement ceremony was graced by Andhra Pradesh Chief Minister N. Chandrababu Naidu, senior members of the State Government, public representatives, local stakeholders and JSW leadership led by Sajjan Jindal, Chairman & Managing Director, JSW Group.
“The commencement of the Rayalaseema Steel Project reflects JSW’s confidence in Andhra Pradesh’s long-term industrial and economic potential,” Sajjan Jindal said.
“India is entering a significant phase of manufacturing and infrastructure expansion, and Andhra Pradesh is at the forefront of this growth. Steel will remain a critical enabler of this growth,” Jayant Acharya, Joint Managing Director & CEO, JSW Steel, said.
The project aligns with our long-term strategy of building future-ready manufacturing assets while supporting regional industrial development. We believe the project will play an important role in strengthening domestic steelmaking capabilities and supporting the region’s growth ambitions, he added.
The project will leverage advanced Electric Arc Furnace (EAF) technology using recycled scrap and high-grade Direct Reduced Iron (DRI) as raw material inputs, to manufacture State-of-the-art Structural Steel.
This Structural Steel will be in high demand stemming from the rise in urbanisation and infrastructure growth in Andhra Pradesh and India, the company said.
As part of the Company’s long-term sustainability and decarbonisation roadmap, the project is being designed with a strong focus on operational efficiency, resource optimisation and low carbon Structural Steel for India and the world. It represents one of the most significant industrial investments in the region and is expected to strengthen Andhra Pradesh’s position as an emerging manufacturing and industrial hub, it added.
Designed as a future-ready steel manufacturing complex, the project will be based on Electric Arc Furnace (EAF) technology and is expected to be among JSW Steel’s most sustainable steelmaking facilities.
By combining energy-efficient processes, greater use of recycled inputs and increasing integration of renewable power, the project will support the Company’s long-term objective of reducing carbon intensity while meeting India’s growing demand for steel in a responsible manner.