ArcelorMittal Steel Plant Moves to Andhra Pradesh, Odisha Faces Industrial Losses: BJD MP

The relocation of a major steel plant by ArcelorMittal Nippon Steel India from Odisha to Andhra Pradesh has sparked a sharp political backlash. The Biju Janata Dal (BJD) has termed the move a serious setback for the state’s industrial prospects .

BJD MP Sasmit Patra described the development as “ regrettable and shameful,” blaming administrative failure for losing a project that was originally planned in Odisha.

Missed Opportunity

The project traces back to an agreement signed during former Chief Minister Naveen Patnaik’s Japan visit with Nippon Steel. It involved a ₹50,000 crore investment to set up a 12-million-tonne steel plant in Kendrapara district. The relocation has now raised concerns over missed industrial opportunities .

Resource and Employment Concerns

The BJD has also objected to the proposed transfer of iron ore from Odisha to Andhra Pradesh through slurry pipelines. Patra questioned how local employment would be sustained if key resources and industries move out, urging Lakshmi Mittal to prioritize production within the state.

Why Andhra Pradesh?

The company has already initiated work on the project in Anakapalli district, citing coastal access, lower logistics costs, and better connectivity to mineral reserves as key advantages.

Political Significance

The issue has gained prominence after the Bharatiya Janata Party (BJP) came to power in Odisha following its strong performance in the 2024 Lok Sabha elections. While new semiconductor projects and inclusion in rare earth corridors offer some optimism, the loss of this steel plant has emerged as a major flashpoint .