Vijayawada:Chief Minister N. Chandrababu Naidu on Tuesday directed officials to prepare a comprehensive action plan to fully utilise Andhra Pradesh’s vast iron ore reserves.
He described these as a “permanent asset”, which is capable of generating substantial revenue and employment opportunities.
Reviewing the performance of the mines and geology department, the CM said the state’s estimated 1,938 million tonnes of iron ore reserves provided enormous scope for industrial expansion and economic growth.
Minister Kollu Ravindra, government adviser Satish Reddy, mines principal secretary Mukesh Meena, APMDC vice-chairman and managing director Praveen Kumar attended the meeting.
Naidu noted that ArcelorMittal Nippon India was setting up a steel plant with a capacity of 17.8 million metric tonnes, while JSW was planning a major steel facility in Rayalaseema. The combined steel production capacity was expected to exceed 20 million metric tonnes annually by 2035.
In view of the anticipated surge in demand, the CM instructed officials to formulate a roadmap to expand steel production capacity in the state. He directed the authorities to allocate the remaining iron ore blocks, excluding those already allotted, to suitable companies. Of the total 17 iron ore blocks in the state, several were yet to be assigned.
Naidu set ambitious production targets of 30 million metric tonnes of iron ore annually by 2030 and 113 million metric tonnes by 2035. He observed that iron ore consumption could increase four-fold in the coming years and said the mineral availability presented Andhra Pradesh with a major opportunity to emerge as a steel manufacturing hub.
According to estimates presented during the review, the sector is expected to attract investments worth `1.90 lakh crore and create nearly 1.52 lakh jobs.
The CM also instructed officials to frame a special policy for processing low-grade magnetite ore, accelerate mineral exploration activities, and ensure speedy approvals for mining leases.
Officials informed the CM that the mines department exceeded its revenue target during 2025-26, achieving 108 per cent of the projected income. The department generated `3,416 crore during the financial year, marking a 32 per cent increase over the previous year. Officials said the growth rate was higher than that recorded in major mineral-rich states such as Odisha, Karnataka, Chhattisgarh, Rajasthan and Madhya Pradesh.
For 2026-27, the state has fixed a revenue target of `4,650 crore, representing a projected growth of 36 per cent over the previous fiscal. Officials said measures such as operationalising mining leases, increasing limestone production and granting new leases were being undertaken to boost mining revenues.
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