Proposed AMNS Captive Port To Have 2.9-km-Long Waterfront

Amaravati: Andhra Pradesh Government has issued three GOs sanctioning and demarcating the areas with a waterfront length of 2.9 km for developing a captive port at DL Puram in Anakapalle district by ArcelorMittal-Nippon Steel (AMNS) India.

The new port is located close to Naval Alternate Operating Base (NAOB) Ramibilli. NAOB is a strategic technical area and control center for the Indian Navy, 60 km south of Visakhapatnam. The deep natural harbour with extensive storage facilities will provide docking and repair mechanisms for INS Varsha-a highly confidential project for nuclear-powered submarines. The first phase of the project is expected to be commissioned next year. The AMNS steel plant envisages a total investment of Rs1.35 lakh crore.

In the GO Ms No5 dated April 9, 2025 issued by the Infrastructure and Investment Department, the port limits have been declared at DL Puram with a waterfront length of 2.9 Kms, which is located beyond the three nautical mile buffer zone stipulated in the NAOB Rambilli Port notification.

The GO said now, the government after careful examination of the entire issue, has decided to allocate captive port at DL Puram subject to obtaining requisite NOC/clearance from Ministry of Defence, Ministry of Home Affairs, Ministry of Shipping and other statutory agencies, as applicable and subject to fulfillment of certain other conditions.

The conditions include setting up of Integrated Steel Plant (ISP) of 17.8 MTPA capacity in two phases (7.3 MTPA in first phase & 10.5 MTPA in phase-II) in Anakapalli district, so as to generate an employment of about 20,000 in Phase-l of the plant by 2029, payment of lease charges for the land to be allotted and including lands proposed to be reclaimed, as prescribed by APMB and payment of waterfront royalty and other dues as applicable and as prescribed by APMB.

Earlier, the Chief Executive Officer, APMB informed the government that AMNS, which is a joint venture between the two of the world’s leading steel manufacturers, ArcelorMittal and Nippon Steel Corporation have submitted proposals for establishment of a port based Integrated Steel Plant at Rajayyapeta with a possibility to create the largest ever ISP in the world of 24 MTPA at a location, provided iron ore supply linkages are there. First phase of ISP is planned for 7.3 MTPA, followed by 10.5 MTPA, ultimately reaching 20-24 MTPA depending on allocation of contiguous land, water, electricity, road and waterfront for housing a captive port coterminous and co-existing with the steel plant. AMNS had also insisted that the ISP will also require a captive port co-existing and coterminous with the ISP in its immediate

neighbourhood to handle cargo. As relative domestic/international prices of raw material including coal, coke, iron ore, iron ore pellets, iron ore concentrate, dolomite and fluxes etc. keep fluctuating, it is necessary to have the advantage of economies of scale through navigational route and port facility, the project proponent had told the government.