Green clearance decision deferred for ArcelorMittal Nippon plant in Andhra

AMNSIL has approached the Ministry of Environment, Forest and Climate Change (MoEFCC) seeking environmental clearance for its ₹1.50 trillion steel plant

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An Expert Appraisal Committee under the MoEFCC has deferred its decision on granting environmental clearance to ArcelorMittal Nippon Steel India Limited's proposed 8.2 million tons per annum steel plant at Anakapalli District of Andhra Pradesh, seeking some clarifications.

AMNSIL has approached the Ministry of Environment, Forest and Climate Change (MoEFCC) seeking environmental clearance for its Rs 1.50 lakh crore steel plant. The EAC deliberated on the proposal in its meeting held on October 30.

"In view of the foregoing and after detailed deliberations, the committee deferred the instant proposal, and asked Ind-1 sector to obtain a clarification from CP Division (Controller of Pollution) on applicability of GSR 85E to the instant proposal, in view of the fact that the site possessed an EC earlier," the EAC said in the Minutes of Meeting.

The total capital cost of the Environmental Management Plan which will be incurred for the proposed integrated steel plant is estimated to be about Rs 3,540 crore with an annual recurring cost of Rs 355 crore.

The total employment generation during the construction phase would be about 23,000 considering peak requirement, of which direct manpower requirement would be about 800 while Indirect requirement would be about 22,200.

During the operation phase, the direct manpower requirement is estimated to be about 3,000 and Indirect requirement would be around 4,500 for operations and maintenance. Employment to the locals will be considered based on meeting the criteria suitable for the job roles, the EAC said.

Sources close to the development said the MoEFCC issued Notification GSR 85(E) on January 30, 2025, specifying criteria for the establishment of Industrial Plants.

Since the site allotment to AMNSIL predated this notification, the company undertook immediate and proactive measures to ensure full compliance with the new siting guidelines, sources said.

AMNSIL formally approached the Andhra Pradesh Pollution Control Board (APPCB) on October 13, 2025, requesting the necessary Certificate/ Letter confirming the site's compliance with the criteria set forth in Notification GSR 85(E).

The APPCB, after following due procedure and considering the site's history as part of an already-cleared Industrial Park, issued its formal compliance letter on October 17, 2025.

"It's basically a siting criterion of industry in any particular location. There was a notification issued by the MOEFCC in January this year. That notification itself is not correct. The Ministry has admitted it, and it is under revision right now. Very soon, that will be out," sources told PTI.

Though the APCCB gave clarification, the legal team of the EAC was not satisfied. Once the clarification comes from the ministry, the proposal will be cleared automatically, sources added without giving a timeframe, sources added.

Meanwhile, the Andhra Pradesh government sources said the Ministry of Steel has granted approval to the steel maker for the establishment of an iron ore slurry pipeline from Chhattisgarh to Andhra Pradesh via Odisha to transport iron ore from the mines to the proposed plant.

The proposed slurry pipeline will transport iron ore in slurry form from Chhattisgarh to Andhra Pradesh, creating a sustainable and cost-efficient logistics corridor that will significantly reduce dependency on road and rail transport.

The project represents a major step toward low-carbon, environmentally responsible industrial logistics, aligning with India's commitment to green infrastructure, it said.