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Due to a delay in land acquisition, ArcelorMittal Nippon Steel India "slows down" its Rs 1 lakh crore steel plant in Odisha and turns its attention 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.