By BizAndhra Bureau
Amaravati: As Chief Minister N. Chandrababu Naidu launched construction of the ₹16,350-crore JSW Rayalaseema Integrated Steel Plant in Kadapa on Friday, a political debate resurfaced over who deserves credit for the project.
Naidu asserted that previous governments had reduced the project to a series of “deceptive foundation-laying ceremonies” and claimed that the NDA government had resolved regulatory bottlenecks and enabled construction to begin. The YSRCP, however, maintains that its government had already completed much of the groundwork, including infrastructure and statutory support.
An examination of official records, company announcements and independent reports shows that the truth lies somewhere in between.
More Than a Foundation Stone
One of the key political claims is that the YSRCP government merely laid a foundation stone without taking the project forward.
The evidence does not support that assertion.
After the Andhra Pradesh government initially proposed the Rayalaseema Steel Plant in 2018, the YSRCP government restructured the project. Following the exit of Liberty Steel, it brought the JSW Group on board, secured approvals through the State Investment Promotion Board (SIPB) in December 2022 and signed the project agreement. A fresh foundation ceremony was held in February 2023.
Preliminary Works Did Begin
The project also progressed beyond the ceremonial stage.
Available records indicate that land development, site preparation and preliminary infrastructure works commenced during the YSRCP government’s tenure. However, these were enabling works rather than construction of the integrated steel plant itself.
There is no evidence that major steel plant structures or production facilities had begun construction before the change of government in 2024.
What Infrastructure Was Created?
The YSRCP government initiated several support projects required for the plant, including:
- Road connectivity
- Compound wall
- Water allocation process
- Power connectivity planning
- Railway connectivity proposals
However, most of these facilities remained incomplete or were still under implementation when the government changed. Reports indicate that some contractor payments were pending, contributing to slower progress.
What Changed Under the NDA Government?
Since taking office in 2024, the NDA government substantially reworked the project.
According to official announcements, it:
- transferred statutory approvals to JSW Rayalaseema Steel Ltd.
- completed land allotment procedures
- reaffirmed allocation of 2 TMC of water from Gandikota Reservoir
- assured 268 MW of power supply
- fast-tracked regulatory clearances under revised Government Orders
- enabled commencement of full-scale project execution.
The Project Itself Has Changed
The current project is significantly larger than the earlier proposal.
JSW now plans to invest ₹16,350 crore, compared with the earlier proposal of around ₹8,800 crore, developing the project in two phases.
The first phase involves a ₹4,500-crore investment for a one-million-tonne-per-annum integrated steel plant, while the second phase will expand capacity to two million tonnes with an additional investment of ₹11,850 crore. The project will use Electric Arc Furnace (EAF) technology to manufacture low-carbon structural steel.
Was Naidu Correct?
Naidu’s claim that his government resolved several regulatory bottlenecks is supported by available evidence.
Independent reports indicate that several pending statutory approvals, land transfers and utility commitments were completed after the NDA assumed office, allowing JSW to formally commence development activities.
Was Jagan’s Role Being Overlooked?
At the same time, describing the previous government’s contribution as merely holding foundation ceremonies is not entirely accurate.
The JSW partnership, project restructuring, SIPB approval, initial site works and development of enabling infrastructure all occurred during the YSRCP government’s tenure. These were necessary steps before large-scale construction could begin.
The Verdict
The Rayalaseema Steel Plant is best viewed as a project that has evolved across successive governments rather than one delivered by a single administration.
The YSRCP government succeeded in identifying JSW as the developer, obtaining key approvals and initiating preliminary infrastructure. However, it did not reach the stage of major plant construction.
The NDA government has since completed several remaining regulatory and infrastructure requirements, expanded the investment from ₹8,800 crore to ₹16,350 crore, and enabled the start of full-scale construction.
As with many large industrial projects, the political narrative has tended to highlight only one phase of the journey. The documentary record indicates that both governments played significant—though different—roles in bringing the Rayalaseema Steel Plant to its current stage.