The long-awaited JSW Rayalaseema steel plant, a mega project valued at Rs 16,350 crore, is set to commence on-site construction at Sunnapurallapalli in the Jammalamadugu constituency within three to four weeks. This marks the end of a two-decade wait for the people of Kadapa and Rayalaseema districts.
Project Overview
The project, which faced years of political shifts and delays, has gained momentum under Chief Minister Nara Chandrababu Naidu, who is expected to visit the site to mark the start of construction. Kadapa District Collector Dr. Sreedhar Cherukuri confirmed that the steel plant is a massive undertaking structured into two distinct phases with a combined financial outlay of Rs 16,350 crore.
Phase 1: Initial Investment
The first phase involves a capital injection of Rs 4,500 crore to establish a production capacity of one million tonnes per annum (MTPA). This foundational stage is expected to create 1,000 direct jobs, with commercial production targeted for April 2029.
Phase 2: Expansion
The subsequent expansion will see an investment of Rs 11,850 crore, scaling up the total production capacity to 2 MTPA and generating an additional 1,500 jobs by April 2034.
Bureaucratic Hurdles Cleared
The collector explained that major bureaucratic hurdles were cleared in March when the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) completed the definitive sale agreement with JSW. This involved transferring over 1,100 acres of land from the erstwhile YSR Steel Corporation, in addition to securing necessary environmental clearances.
Logistical Support
The state government has put in place substantial logistical support to ensure uninterrupted industrial operations. A dedicated 400 kV double-circuit transmission line from the Jammalamadugu substation has been established to meet a hefty 268 MW power demand. The government is also extending an assured allocation of 2 TMC feet of water from the nearby Gandikota reservoir. A new 12-km, four-lane road connecting National Highway 67 (NH 67) to the factory gates has been built, and a dedicated 12-km railway line from the JSW plant to the Muddanur railway station has been completed.
Green Steel Technology
In a major departure from traditional emission-heavy industrial centers, the plant will bypass coal-fired blast furnaces entirely. Instead, it will deploy state-of-the-art, scrap-based Electric Arc Furnace (EAF) technology. Supported by hydroelectric and renewable energy sources, the Rayalaseema plant is designed to operate as a low-carbon facility, marking a critical transition toward sustainable "green steel" manufacturing in southern India.
Economic Impact
The project is expected to cumulatively create 2,500 jobs, with commercial production beginning in April 2029. This development ends a two-decade-long dream for the people of Kadapa and Rayalaseema districts.
