Vijayawada: With iron ore utilisation expected to increase fourfold, chief minister
N Chandrababu Naidu set production targets at 30 million tonnes by 2030 and 113 million tonnes by 2035.
In a review meeting with officials of the mining department on Tuesday, Naidu asked them to draw up a comprehensive action plan to fully harness Andhra Pradesh's iron ore reserves to drive investments, employment and steel production.
Naidu said the state possesses about 1,938 million tonnes of iron ore reserves, offering a sustained opportunity to increase revenues and position Andhra Pradesh as a steel manufacturing hub. He said ArcelorMittal Nippon Steel India is setting up a steel plant with an annual capacity of 17.8 million tonnes, while JSW is planning a major unit in the Rayalaseema region. By 2035, the combined capacity of these plants is expected to exceed 20 million tonnes a year, he said.
In this backdrop, the chief minister directed officials to prepare a clear roadmap to expand steel production capacity in the state. Naidu told the officials to expedite the allotment of iron ore blocks to various companies.
Citing projections of a fourfold increase in iron ore consumption in the coming years, the chief minister said the sector could attract investments worth Rs 1.90 lakh crore and generate employment for about 1.52 lakh people. He asked officials to frame a special policy for processing low-grade magnetite ore, apart from expediting mineral exploration and fast-tracking mining lease approvals.
Officials informed the chief minister that the mining department exceeded its revenue target in 2025-26 by achieving 108% of estimates. The department earned Rs 3,416 crore during the year, registering 32% growth over the previous year, the highest among major mineral-producing states such as Odisha, Karnataka, Chhattisgarh, Rajasthan and Madhya Pradesh.
For 2026-27, a revenue target of Rs 4,650 crore has been fixed, reflecting a 36% increase. Officials said measures such as operationalising mining leases, increasing limestone production and granting new leases were being taken to achieve the target.
The minister for mines and geology, Kollu Ravindra, govt adviser Satish Reddy, principal secretary (mines) Mukesh Kumar Meena, APMDC vice chairman and managing director Praveen Kumar, and senior officials attended the review.
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Srikanth Aluri is the assistant editor at Times of India, Vijayaw...
Read MoreSrikanth Aluri is the assistant editor at Times of India, Vijayawada. He covers Chief Minister’s office, Telugu Desam Party, diaspora and the high court. In his 15 years of career as on ground journalist, Srikanth worked in Hyderabad, New Delhi and Vijayawada. He wrote extensively on AP politics, civic and legal issues.
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