From Our Correspondent
The long-delayed Rayalaseema Steel Plant in Kadapa is finally turning into a reality.
Andhra Pradesh Chief Minister N. Chandrababu Naidu is set to launch construction works for the long-awaited Rayalaseema Steel Plant on July 3, 2026, at Sunnapurallapalle village in the Jammalamadugu constituency of Kadapa district.
Developed in partnership with JSW Steel Limited, the massive integrated steel facility involves a total planned capital investment of ₹16,350 crore and aims to begin full commercial production by 2028.
Project Phasing and Investment Structure
The megaproject will be executed in two separate, well-defined phases across an 1,100-acre industrial site:
Phase I (Immediate Launch): Backed by a financial outlay of ₹4,500 crore, Phase I will target an initial manufacturing output capacity of 1 million tonnes per annum (MTPA). It is slated to create 1,000 direct jobs for local youth.
Phase II (Expansion Line): Backed by an additional infusion of ₹11,850 crore, this expansion will scale the cumulative production capacity to 2 million tonnes per annum (MTPA) and add 1,500 more jobs, taking total direct employment to 2,500 personnel.
Transition to “Green Steel” Technology
The plant will utilize eco-friendly, scrap-based Electric Arc Furnace (EAF) technology, bypassing traditional coal-fired methods. Powered by renewable energy, this facility aims to establish low-carbon “green steel” production in Southern India.
Dedicated Infrastructure Corridors
To ensure operational efficiency, the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) has established key infrastructure:
Water Supply: A 2 TMC ft allocation from the Gandikota reservoir.
Logistics: A 12-km four-lane road connecting to NH 67 and a 12-km dedicated rail link to Muddanur station.
Power: A 400 kV double circuit transmission line.
Socio-Economic Impact
This project realizes a long-held economic goal for the Rayalaseema region, expected to catalyze a robust industrial ecosystem of ancillary units across Kadapa, Kurnool, and Anantapur. Following the foundation laying on July 3, Chief Minister Naidu will begin a broader industrial tour.
A Chequered History
The Rayalaseema Steel Plant has a chequered history marked by political transitions and bureaucratic hurdles that have delayed it for nearly two decades. Originally conceived back in 2007 by former Chief Minister Y.S. Rajasekhara Reddy under the name Brahmani Steels, the project was shelved following his sudden demise and involvement of its promoter Gali Janardhana Reddy in various scams.
The 2014 Bifurcation and the SAIL Feasibility Dispute
The Reorganisation Promise: Following the bifurcation of Andhra Pradesh in 2014, establishing an integrated steel factory in the backward Kadapa district was formalized under the 13th Schedule of the AP Reorganisation Act. The central government mandated the Steel Authority of India Limited (SAIL) to examine its viability.
The Central Refusal: SAIL and the Union Steel Ministry subsequently rejected the plan, citing a lack of local high-grade iron ore reserves and high operational unfeasibility. This sparked local protests, hunger strikes, and intense friction between the state and the central government.
A Timeline of Repeated Foundation Stones (2018–2023)
Due to the continuous delays from the central government, successive state regimes repeatedly tried to float independent entities to push the project through:
December 2018 (N. Chandrababu Naidu): Recognizing that central assistance was stalled, the TDP government established a Special Purpose Vehicle (SPV) called the Rayalaseema Steel Corporation. Chief Minister Naidu laid a foundation stone at Kambaladinne village in Mylavaram mandal, intending to fund it natively through the AP Mineral Development Corporation. However, a subsequent change in government froze progress.
December 2019 (Y.S. Jagan Mohan Reddy): The newly elected YSRCP government discarded the old site, re-branded the undertaking as AP High Grade Steels Limited, and shifted the location to Sunnapurallapalle. A fresh foundation stone was laid with a promised 3-year deadline, but sourcing partners failed to materialize quickly.
February 2023 (JSW tie-up): The state government signed a pact with the JSW Group. A third post-bifurcation foundation stone was laid at Sunnapurallapalle by the state leadership. While minor site clearing and preliminary survey packages commenced, major ground construction faced prolonged structural adjustments.
The upcoming rollout on July 3, 2026, represents the final transition from administrative revisions to real structural engineering, aiming to break the 12-year developmental deadlock in Rayalaseema.