JSW Steel Launches Construction of ₹16,350 Crore Integrated Steel Plant in Kadapa

What Happened

Chief Minister N. Chandrababu Naidu and JSW Group Chairman Sajjan Jindal jointly launched construction of the JSW Rayalaseema Integrated Steel Plant at Sunnapurallapalli and Peddadanluru villages in Jammalamadugu mandal, Kadapa district. This came nearly seven years after it was first proposed.

The project was originally approved in 2019 and witnessed foundation ceremonies in 2019 and again in 2023. Following the formation of the TDP-led coalition government in 2024, the project was revived through sustained engagement with JSW.

Who Decided

The event was attended by Andhra Pradesh Chief Minister N Chandrababu Naidu and JSW Group leadership led by Chairman and Managing Director Sajjan Jindal. Union Minister Srinivasa Varma, local MLA Adinarayana Reddy, and BJP State President Madhav also participated. The project is to be supported under the state's Industrial Development Policy, with multiple departments directed to provide infrastructure and clearances.

Investment and Capacity

The facility will be built across 1,100 acres with a total investment of Rs 16,350 crore in two phases. Phase I involves Rs 4,500 crore for a 1 MTPA integrated plant with commercial production targeted by 2028–29, while Phase II adds up to Rs 11,850 crore to expand capacity to 2 MTPA by 2034. The facility will use Electric Arc Furnace technology powered by scrap and Direct Reduced Iron, making it a green steel facility.

Employment and Green Energy

The first phase will provide employment to 1,000 people. In the second phase, the plant will be expanded to another one million tonnes of capacity with an investment of Rs 11,850 crore and it will provide jobs to 1,500 people. A dedicated 400 MW solar and wind power project worth Rs 2,400 crore by JSW NeoEnergy will supply renewable energy to the plant, directly supporting JSW's 2050 net-zero commitment.

Kopparthy IT and Electronics Cluster

Kadapa district is strengthening its position as a steel and mineral-based manufacturing hub with the JSW steel plant, proposed IT cluster and electronics manufacturing ecosystem at Kopparthy. Alongside the ₹16,350-crore JSW Rayalaseema Integrated Steel Plant, the proposed IT cluster at Kadapa and electronics manufacturing ecosystem at Kopparthy are expected to diversify the district's industrial base. The Kopparthy Industrial Area, located in Kadapa District under the Vizag-Chennai Industrial Corridor (VCIC), spans 2,596 acres and is strategically connected by SH 51 and NH 40, with 13 km proximity to Kadapa Airport. The industrial smart city would come up in Kopparthy in 2,596 acres and the centre would spend Rs 2,137 crore on this smart city which would provide 54,500 jobs.

Broader Regional Investment Context

The JSW plant sits within a ₹4.58 lakh crore pipeline of 172 projects approved by SIPB and 103 additional proposals generated at the CII Partnership Summit, making a total of 275+ projects and 3.57 lakh projected job opportunities. Rayalaseema is emerging as a major industrial growth engine with investment commitments exceeding ₹4.58 lakh crore across more than 275 projects.

What Changed

The launch moves the long-stalled Kadapa steel project into active construction after a seven-year gap marked by two previous foundation ceremonies that produced no substantive progress. The project is expected to support the development of ancillary industries, logistics infrastructure and broader economic activity across the Rayalaseema region. The project signals a shift in regional industrial strategy, positioning Kadapa as an anchor for steel manufacturing alongside the expanding electronics and IT ecosystem at Kopparthy, transforming the drought-prone Rayalaseema region into a diversified manufacturing hub.

What Is Next

Construction activities are expected to begin in earnest over the coming months. Phase I targets commercial production by 2028–29, with Phase II expansion to 2 MTPA by 2034. The state government has committed dedicated water supply, road connectivity to National Highway 67, and coordinated infrastructure support. The Kopparthy IT and electronics cluster remains in the planning phase, with infrastructure development underway as part of the broader NICDC-led industrial corridor initiative. India will soon have 20 smart industrial cities—including four operational (Dholera in Gujarat, Shendra-Bidkin in Maharashtra, Greater Noida in Uttar Pradesh, and Vikram Udyogpuri in Madhya Pradesh) and four others under construction.