ArcelorMittal Nippon Steel India 'slows down' Rs 1 lakh crore steel plant in Odisha over land acquisition delay, shifts focus to Andhra

ArcelorMittal Nippon Steel India (AMNS India), a joint venture between the world’s largest steelmaker, ArcelorMittal and Japan’s Nippon Steel, is reportedly scaling back its focus on its Rs 1.02 lakh crore mega steel plant in Odisha.

The 24 million tonnes per annum (mtpa) project, once hailed as a cornerstone of Odisha’s industrial ambitions, is now slowed down due to persistent land acquisition delays and administrative bottlenecks, reported The Hindu’s Businessline.

The reports mentioned that although the Odisha government had issued land acquisition notices under the Land Acquisition Act in late 2024 to acquire 383 acres in Badatubi village, verification of land rights is still underway.

Further, rehabilitation and resettlement activities are also incomplete. Meanwhile, there has been no clear response from AMNS or the state authorities about when the project might gain momentum.

Andhra Pradesh Steps In

In sharp contrast, AMNS has significantly accelerated its plans in Andhra Pradesh. A greenfield plant of 7.3 mtpa capacity, involving an investment of Rs 55,964 crore, is slated to be operational by January 2029.

Provisional land allotment was completed in just four months, a record pace, by the Andhra Pradesh government. The state has also committed to offering attractive industrial incentives and has already handed over required land parcels.

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The Andhra project will be developed in two phases, with Phase 1 generating around 20,000 jobs and requiring 2,200 acres of land. Phase 2 aims to expand capacity to 10.5 mtpa, taking total investments to Rs 80,000 crore by 2033.

Strategic Shift Reflects Investor Priorities

Despite Odisha’s earlier agreement with AMNS in 2021 for a massive investment, bureaucratic inertia appears to have cost the state a leading role in one of the country’s largest steel ventures.

While Odisha remains a site of interest for future expansion, as AMNS maintains a presence here, its slow progress has allowed Andhra Pradesh to emerge as the frontrunner.

With AMNS’s focus now turning south, Odisha’s industrial ambitions face a moment of recalculation, and the state risks missing out on thousands of jobs and massive capital inflows if delays continue.

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As such, the comparison between the two states sends a clear message that faster approvals and cleaner execution win investment, and right now, Andhra Pradesh is winning that race.