Synopsis: JSW Steel has started construction of its ₹16,350 crore integrated steel plant in Kadapa district, Andhra Pradesh. The long-delayed project is expected to boost the company’s production capacity while adding momentum to Rayalaseema’s growing industrial development.
Nearly seven years after it was first proposed, the steel plant at Kadapa has finally moved into the construction stage. Chief Minister N. Chandrababu Naidu, along with JSW Group Chairman Sajjan Jindal, launched construction work on July 3, 2026, at Sunnapurallapalli and Peddadanluru villages in Jammalamadugu mandal, Kadapa district one of the biggest single industrial investments Rayalaseema has seen. The project is expected to create a strong manufacturing base in the region while contributing to JSW Steel’s long-term expansion plans.
Project at a Glance
Why Rayalaseema?
Rayalaseema’s strategic location between Bengaluru, Chennai, and Hyderabad gives it access to key centers of consumption, a skilled labor market, and existing industry. The project is backed by state infrastructure investment: dedicated water supply works are underway at the site, connectivity to National Highway 67 (NH-67) is under execution, and a 12-kilometre railway link connecting the plant to Muddanuru Railway Station is being pursued through RITES under the PM Gati Shakti initiative. Separately, the Andhra Pradesh government has invested around ₹12,484 crore over the past two years on regional irrigation projects Telugu Ganga, Galeru-Nagari, Handri-Neeva, HLC, LLC, KC Canal and SRBC.
Why This Project Matters
It’s one of the largest single industrial investments Rayalaseema has ever seen, and the first private steel plant to actually reach construction on this site after a state-run version failed to move forward in 2019. It uses Electric Arc Furnace EAF technology JSW’s second such plant after Karnataka signalling a shift toward lower-carbon steelmaking backed by scrap and DRI instead of coking coal. At full 2 MTPA capacity, it becomes a meaningful contributor to JSW’s stated goal of 50 MTPA domestic capacity by FY31. It’s paired with a dedicated 400 MW renewable power project (₹2,400 crore), tying the plant directly to JSW’s 2050 net-zero commitment. Site work is already visible on the ground: the boundary wall, office buildings and guest house are complete, and the water sump is under construction
Project Timeline
- 2019 (Origin): Initial approval for a state-run steel plant in Kadapa; first foundation ceremony held.
- 2023 (Transition): Project transferred to JSW; second foundation ceremony held.
- 2024 (Revival): Project revived following sustained engagement by the TDP-led coalition government.
- July 3, 2026 (Execution): Construction work officially begins.
- 2028–2029 (Phase 1): Commercial production is targeted during this period, though different reports mention varying timelines.
- 2034 (Phase 2): Expansion to 2 MTPA capacity targeted for completion.
Other Investments Coming to Rayalaseema
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. By district:
- Kurnool: ₹22,976 crore Indichip Semiconductors project; touted as the “Drone City” of India
- Anantapur: Defence and aerospace manufacturing, building on its existing automotive industry led by Kia Motors
- Chittoor: ₹898 crore footwear manufacturing unit by Hwaseung (its first India plant); around 17,000+ jobs expected
- Annamayya: Proposal for a ₹1 lakh crore Global Horticulture Hub at Madanapalle
- Nellore: Proposed ingot and wafer manufacturing unit by Tata Power Renewable Energy
- Kopparthy (Kadapa): A proposed IT cluster and electronics ecosystem alongside the steel plant
- Tirupati: C.M Naidu also referenced upcoming space and drone industry investment, with JSW indicating interest in the district
JSW Steel’s Expansion Plans
The Kadapa project is in line with JSW Steel’s wider approach of increasing its crude steel manufacturing capability within India while simultaneously adopting technologies with reduced emissions. The company has an existing crude steel manufacturing capacity of 37.9 MTPA, inclusive of its joint ventures, and is targeting 50 MTPA in India by FY31. The commissioning of the 2 MTPA Rayalaseema plant is another step toward that goal. The use of Electric Arc Furnace technology, alongside renewable energy sourcing, highlights the company’s emphasis on efficiency and scrap-based steel production.
