From Our Correspondent
Amaravati/New Delhi: In a setback to ArcelorMittal Nippon Steel India Limited’s (AMNSIL) proposed ₹1.50 lakh crore steel plant in Andhra Pradesh, the Ministry of Environment, Forest and Climate Change (MoEFCC) has deferred a decision on granting environmental clearance for the project. The Expert Appraisal Committee (EAC), which reviewed the proposal on October 30, has sought further clarifications before taking a final call.
According to the minutes of the EAC’s meeting, the committee asked the ministry’s Industry-I sector to seek clarification from the Controller of Pollution (CP) Division on the applicability of GSR 85(E), given that the proposed site had already been granted an environmental clearance in the past. “In view of the foregoing and after detailed deliberations, the committee deferred the instant proposal,” the minutes noted.
The project, proposed at Karakam Village, Anakapalli District, envisages an annual production capacity of 8.2 million tonnes of steel, making it one of India’s largest greenfield steel investments. AMNSIL — a joint venture between ArcelorMittal and Japan’s Nippon Steel — had approached the MoEFCC seeking clearance to begin construction at the site.
Confusion Over Earlier “Green Nod” Reports
The deferral comes even as several reports (including in BizAndhra) earlier this month suggested that the government had already approved the environmental clearance for the same project. Some national dailies and project tracking platforms claimed that the MoEFCC had “greenlit” AMNSIL’s Andhra proposal, projecting it as a major boost for the state’s industrial growth.
However, official records accessed this week make it clear that the proposal has not yet been cleared. The EAC has paused the process pending clarification from the pollution control wing — an important step in determining whether the site’s previous clearance can be extended or whether a new appraisal under current norms is required.
Key Hurdle: Regulatory Applicability
The deferral appears procedural rather than substantive. The main question before the EAC is whether the plant, located on land that already carried a prior environmental clearance, falls under the purview of the newer GSR 85(E) guidelines — which govern how such projects must be reassessed.
Regulatory experts say this could influence how future industrial expansions and brownfield redevelopments are treated across India. “The committee’s query indicates that the ministry wants to ensure compliance with the latest legal framework before granting any go-ahead,” said a senior environmental analyst familiar with large industrial clearances.
Massive Investment, High Stakes
The proposed project is central to Andhra Pradesh’s industrial strategy, promising significant employment and infrastructure development. The ₹1.5 lakh crore investment plan includes a greenfield integrated steel plant, captive power generation, and associated facilities. ArcelorMittal has already secured the required land parcel and has been engaging with state officials for logistical and port connectivity support.
State government officials privately expressed hope that the deferral is “only a temporary procedural step” and that the final clearance will come once the MoEFCC’s internal divisions reconcile the compliance interpretation.
Political and Economic Implications
For the Chandrababu Naidu-led government, which has been pitching Andhra Pradesh as a prime investment destination, the project’s clearance is a high-profile test case. The administration has been eager to showcase the ArcelorMittal plant as a symbol of Andhra’s industrial resurgence and as evidence of restored investor confidence after years of uncertainty.
However, the latest development underlines the complexity of environmental approvals for mega industrial projects in India, where overlapping clearances and legacy permissions often create procedural bottlenecks.
The Road Ahead
The EAC’s decision will be revisited once the Controller of Pollution Division provides its clarification. Only then can the MoEFCC issue a formal order granting or denying clearance. Until then, the project remains in regulatory limbo.