The backward Rayalaseema region in Andhra Pradesh is witnessing a major transformation, thanks to a series of infrastructure and industrial projects coming up in the arid belt. Among them is the long-awaited Rayalaseema Steel Plant in Kadapa town. The Chief Minister N Chandrababu Naidu is set to launch construction works for the Plant on July 3 at Sunnapurallapalle village in the Jammalamadugu constituency of Kadapa district.
The integrated steel plant, spread over 3,500 acres, is being developed in partnership with JSW Steel Limited with a total planned capital investment of Rs 16,350 crore. The plant is set to begin full commercial production by 2028.
On May 22, a 600-MW solar power project was inaugurated at T Konduru village in Jammalamadugu constituency of Kadapa district. Developed by a private firm at an investment of Rs 3,000 crore, the project spread over nearly 2,400 acres, is now operational.
“We are committed to strengthening green energy infrastructure in the state. The solar project will play a key role in meeting future power demands,” IT and Education Minister Nara Lokesh said while inaugurating the facility.
On June 24, the Chief Minister inaugurated India’s first private gold mining project at Jonnagiri, developed at a cost of Rs 406 crore. According to officials, the project commenced commercial production on June 25, with gold being marketed in the form of 100-gram and 500-gram biscuits.
“This is a landmark moment for Andhra Pradesh. The mining sector will generate employment and boost the state’s economy,” the Chief Minister said during the inauguration. Officials said the mine is expected to produce about 400 kg of gold initially, with output projected to increase to 900 kg in subsequent stages.
The project is spread across approximately 598 hectares, covering the villages of Jonnagiri, Erragudi, and Pagidirayi in Tuggali mandal. It is the first private sector gold mine with an integrated processing facility in the country in 70 years.
Until now, India's only operational gold mines were located at Kolar and Hutti in Karnataka, both established during the British era. While the Hutti mine continues to be operated by a Karnataka government enterprise, mining at Kolar was suspended long ago. Kolar produced an estimated 800–900 tonnes of gold over 120 years, with shafts sinking to 3.2 km — among the deepest in the world — before its ore thinned and the mine was abandoned.
Unlike the deep underground workings at Kolar Gold Fields, Jonnagiri is being developed as an open-pit mine, extracting ore through surface excavation
Steel plant in phases
The Rayalaseema steel plant will be executed in two separate, well-defined phases. Under Phase I, backed by a financial outlay of Rs 4,500 crore, the initial target is 1 million tonnes per annum (MTPA). It is slated to create 1,000 direct jobs for local youth.
The Phase II expansion is backed by an additional infusion of Rs 11,850 crore to scale the cumulative production capacity to 2 million tonnes per annum (MTPA) and add 1,500 more jobs, taking total direct employment to 2,500 personnel.
The plant will utilize eco-friendly, scrap-based Electric Arc Furnace (EAF) technology, bypassing traditional coal-fired methods. Powered by renewable energy, this facility aims to establish low-carbon “green steel” production in Southern India.
This project realizes a long-held economic goal for the Rayalaseema region, expected to catalyze a robust industrial ecosystem of ancillary units across Kadapa, Kurnool, and Anantapur.
The Rayalaseema Steel Plant has a chequered history marked by political transitions and bureaucratic hurdles that have delayed it for nearly two decades. Originally conceived back in 2007 by former Chief Minister Y.S. Rajasekhara Reddy under the name Brahmani Steels, the project was shelved following his sudden demise in 2009 and involvement of its promoter Gali Janardhana Reddy in various scams.
Also read: AP temples hold 1,834 kg gold, ₹2,763 cr in deposits: Data
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