JSW Steel has started construction of a new 2 million tonne per year integrated steel mill in Andhra Pradesh, marking a major step in India’s shift toward low-carbon steelmaking. The project, valued at around $1.72 billion, is being developed through JSW Rayalseem Steel Limited, a wholly owned subsidiary of JSW Steel.

The facility will be built in two phases and is designed as a green steel plant. It will use scrap-based electric arc furnace technology powered by renewable energy, helping reduce carbon emissions compared with traditional steel production methods.

The Andhra Pradesh project is expected to strengthen JSW Steel’s domestic capacity while supporting India’s growing demand for sustainable and cleaner steel. With green steel gaining importance across infrastructure, construction, and manufacturing sectors, the new EAF-based mill highlights the industry’s move toward environmentally responsible production.