Interarch Building Solutions to Invest ₹300 Crore in New Nellore Steel Plant

Nellore — Interarch Building Solutions has announced a ₹300 crore investment to expand its heavy‑steel plant in the coastal district of Nellore, Andhra Pradesh. The expansion will raise the plant’s annual capacity to 24,000 metric tonnes, according to reports from The Hindu and other business outlets on Thursday, 24 September 2026.

Expansion details

The new unit will be built on a 10‑hectare plot adjacent to the existing facility. The company said the investment will cover the procurement of a high‑pressure furnace, a blast‑furnace line, and ancillary equipment. The expansion is expected to increase the plant’s output by 20 percent, from its current 20,000‑MT capacity to 24,000 MT.

Economic impact

Interarch’s spokesperson said the project will create 1,200 direct jobs and 3,000 indirect jobs in the region. The company also highlighted that the new plant will support local suppliers of raw materials such as iron ore and limestone, and will contribute to the state’s industrial output. The investment is part of a broader push by Andhra Pradesh to attract heavy‑industry projects in the Nellore district, which has a growing logistics network and proximity to the port of Nellore.

Funding and timeline

The ₹300 crore outlay will be financed through a mix of equity and long‑term debt. Interarch said the project will be completed in 18 months, with the first batch of steel expected to reach the market by March 2028. The company has already secured a land lease from the state government and has obtained environmental clearance from the Ministry of Environment, Forest and Climate Change.

Regulatory approvals

According to the company’s statement, the project has received clearance from the Andhra Pradesh Pollution Control Board and the Ministry of Steel. The plant will comply with the National Green Tribunal’s guidelines on emissions and will incorporate a waste‑heat recovery system to reduce energy consumption.

Industry context

India’s steel industry has been expanding to meet rising demand from construction and infrastructure projects. The government’s recent “Make in India” push has encouraged domestic firms to increase capacity. Interarch’s expansion aligns with the state’s industrial policy, which offers tax incentives for heavy‑industry projects in designated zones.

Reactions from stakeholders

The Nellore district administration welcomed the investment, noting that it would boost local employment and industrial activity. A district official said the project would also improve the region’s logistics infrastructure, including road and rail connectivity to the port.

Local suppliers have expressed optimism about increased demand for raw materials. A representative of a nearby limestone quarry said the company’s expansion would secure a steady market for the district’s mineral resources.

Future outlook

Interarch Building Solutions plans to use the new plant to produce high‑strength steel for the automotive and construction sectors. The company’s CEO said the expansion would position the firm to meet the projected 10 percent growth in domestic steel demand over the next five years.