Andhra Pradesh Chief Minister N. Chandrababu Naidu reviews the performance of the Mines Department with senior officials at his camp office in Vijayawada on Tuesday. X/@AndhraPradeshCM | Photo credit: Special arrangement
Andhra Pradesh Chief Minister N. Chandrababu Naidu on Tuesday (May 5, 2026) directed officials to prepare a comprehensive action plan to fully exploit the state’s vast iron ore reserves, saying the asset has the potential to stimulate revenue growth and large-scale job creation.
It said the mining and steel sector could attract ₹1.90 crore worth of investment and create employment for around 1.52 million people.
While reviewing the performance of the mining department at his camp office, Mr. Naidu highlighted that Andhra Pradesh has about 1,938 million tonnes of iron ore reserves, which offers a significant opportunity to boost industrial development.
Hon’ble Chief Minister Shri Nara Chandrababu Naidu directed the officials to exploit the iron ore deposits of the state to generate income for the state and provide employment to the youth. ArcelorMittal Nippon India to set up 17.8 MT steel plant at Nakkapally pic.twitter.com/5XcvXbqsuc
— CMO Andhra Pradesh (@AndhraPradeshCM) May 5, 2026
He tasked officials to ensure optimum utilization of these resources to transform the state into a major hub for steel production.
Mr. Naidu noted that leading companies such as ArcelorMittal Nippon Steel India are setting up a 17.8 million tonne steel plant, while JSW Steel is also planning a large facility in the Rayalaseema region.
“By 2035, the combined annual steel production capacity in the state is expected to cross 20 million tonnes,” Mr Naisdu said.
Mr. Naidu asked officials to formulate a plan to increase steel production capacity. He directed that out of the 17 identified iron ore blocks in the state, the unallocated blocks should be allotted to suitable companies first.
Mr. Naidu said the state should aim to produce 30 million tonnes of iron ore per year by 2030 and increase it to 113 million tonnes per year by 2035.
He directed the officials to devise a specialized policy for the processing of low-grade magnetite ore and speed up mineral exploration activities. He stressed the importance of expediting the approval of mining leases and getting them operational quickly to maximize output and revenue.
Revenue growth goals
Officials informed the chief minister that the mines department has exceeded its revenue target for 2025-26 and has achieved 108% of the target. The department generated ₹3,416 crore during the financial year, a 32% increase over the previous year. This growth rate outpaced that of large mineral-rich states such as Odisha, Karnataka, Chhattisgarh, Rajasthan and Madhya Pradesh, they said.
For the financial year 2026–27, the government has set a revenue target of ₹4,650 crore, with a target of 36% increase over the previous year.
Published – May 6, 2026 1:16 PM IST
