Mumbai, July 7 -- JSW Steel has begun development activity for an integrated steel plant in the Rayalaseema region of Andhra Pradesh, announcing a planned investment of Rs 163,500 million (Rs 163.5 bn).
The facility will be developed by JSW Rayalaseema Steel Ltd, a wholly owned subsidiary of JSW Steel, and aims to support long-term manufacturing growth in the state. The company framed the project as one of the largest industrial investments in the region.
In the first phase the company will invest Rs 45,000 million (Rs 45 bn) to establish a one million (mn) tonne (t) per annum integrated steel plant producing low-carbon steel. A second phase would involve an additional investment of up to Rs 118,500 million (Rs 118.5 bn) to expand capacity to two mn t per annum, bringing the total planned investment to Rs 163,500 million. The project plan outlines phased capacity growth and associated infrastructure requirements.
The plant will use Electric Arc Furnace technology with recycled scrap and high-grade Direct Reduced Iron as key raw material inputs and is intended to manufacture structural steel products for infrastructure and urbanisation demand. The company indicated that the choice of technology reflects a focus on low-carbon production methods and material recycling to meet market needs. The supply chain and product mix are targeted at construction and industrialisation projects across the region.
State leaders and company executives attended the commencement event, and the chairman said the investment reflected confidence in Andhra Pradesh's long-term industrial potential and the state leadership's focus on building an ecosystem for manufacturing and infrastructure. The company stated the project is expected to benefit from planned road, rail, power and water infrastructure and is expected to support the development of ancillary industries and logistics. The investment is positioned as a catalyst for broader economic activity in Rayalaseema.
Published by HT Digital Content Services with permission from Construction World.