AP CM’s Big Steel Bet: Iron Ore To Power Rs 2 Lakh Crore Industrial Wave

Andhra Pradesh Chief Minister N. Chandrababu Naidu on Tuesday said the state’s iron ore reserves could anchor a broader industrial transformation , attracting nearly Rs 2 lakh crore in investments and generating over 1.5 lakh jobs .

Reviewing the Mines Department, Naidu emphasised that the availability of 1,938 million tonnes of iron ore presents a major opportunity to develop Andhra Pradesh into a steel manufacturing hub . He noted that iron ore utilisation is expected to increase fourfold in the coming years, driven by large-scale industrial projects and downstream demand.

The chief minister highlighted that major players such as ArcelorMittal Nippon Steel India and JSW Steel are planning significant investments in the state. While ArcelorMittal Nippon Steel India is setting up a plant with a capacity of 17.8 million tonnes , JSW Steel is exploring a major facility in the Rayalaseema region. By 2035 , the combined steelmaking capacity is expected to exceed 20 million tonnes annually , forming the backbone of an integrated steel ecosystem.

Naidu said the state aims to move beyond raw mineral extraction by promoting value-added manufacturing , including beneficiation, pelletisation, and downstream industries such as engineering goods and construction materials. He directed officials to prepare a comprehensive roadmap to scale up production, set targets of 30 million tonnes per annum by 2030 and 113 million tonnes by 2035 , and expedite allocation of the remaining iron ore blocks.

The development of mining and steel clusters, particularly with improved connectivity to ports such as Visakhapatnam and Krishnapatnam, is expected to reduce logistics costs and enhance export competitiveness. The government also plans to strengthen industrial corridors and support ancillary units, which could create jobs across skill levels and boost MSME participation.

Officials informed that the Mines Department exceeded its revenue target in 2025–26, achieving 108 per cent with collections of Rs 3,416 crore , a 32 per cent increase over the previous year. The growth, the release said, outpaced mineral-rich states such as Odisha and Chhattisgarh.

For 2026–27, the state has set a revenue target of Rs 4,650 crore , aiming for a 36 per cent rise , as it seeks to strengthen its position among India’s leading mineral-based industrial economies.