JSW’s ₹16k-Cr Rayalaseema steel plant moves into construction phase in 3-4 weeks

Tirupati: Ending two decades long wait, the ₹16350 cr mega JSW Rayalaseema steel plant on-site construction is set to get underway at Sunnapurallapalli in Jammalamadugu constituency in three to four weeks from now.

The project, which has weathered years of political shifts and delays, has gained aggressive momentum with chief minister Nara Chandrababu Naidu expected to visit the site to mark the commencement of the construction work.

Kadapa district collector Dr Sreedhar Cherukuri said the steel plant is a massive project which has been structured into two distinct phases with a combined financial layout of ₹16,350 crore.

The initial phase involves a capital injection of ₹4,500 crore to establish a production capacity of one million tonnes per annum (MTPA). This foundational stage is slated to create 1,000 direct jobs, with commercial production targeted for April 2029.

Following this, a subsequent expansion investment of ₹11,850 crore will pump in resources to scale up the total collective production capacity to 2 MTPA, generating an additional 1,500 jobs by April 2034.

Kadapa district collector explained that the project cleared major bureaucratic hurdles in March when the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) completed the definitive sale agreement with JSW, transferring over 1,100 acres of land from the erstwhile YSR steel corporation, besides securing the necessary environmental clearances.

The state govt has also put in place substantial logistical support to ensure uninterrupted industrial operations. A dedicated 400 kV double-circuit transmission line routed from the Jammalamadugu substation has been established to meet a hefty 268 MW demand.

The state govt is extending an assured allocation of 2 TMC ft of water sourced directly from the nearby Gandikota reservoir. A brand-new, 12-km, four-lane road connecting National Highway 67 (NH 67) straight to the factory gates has been established. A dedicated 12 km long railway line from the JSW plant to the Muddanur railway station has also been completed.

In a major departure from legacy, emission-heavy industrial centers, the plant will bypass traditional coal-fired blast furnaces entirely, and deploy state-of-the-art, scrap-based Electric Arc Furnace (EAF) technology. Supported by hydroelectric and renewable energy matrices, the Rayalaseema plant is designed to operate as a low-carbon facility, marking a critical transition toward sustainable “green steel” manufacturing in southern India.

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JSW’s ₹16k cr Rayalaseema steel plant to get into construction phase in 3-4 weeks, ending two decades dream of the people of Kadapa and Rayalaseema districts

JSW to invest ₹4500 cr to reach a production capacity of 1 MTPA under Phase-1

An investment of ₹11850 cr to be pumped in under Phase-2 to reach a cumulative production capacity of 2 MTPA

With commercial production targeted to begin by Apr 2029, JSW’s Rayalaseema steel plant to cumulatively create 2500 jobs