ArcelorMittal Nippon Steel India Limited (AMNSIL) is setting up a large Integrated Steel Plant (ISP) in Anakapalli district as part of a two-phase project. The first phase will have a production capacity of 8.2 million tonnes per annum (MTPA), with 70% being hot rolled coils, or 5.8 MTPA. The full plant aims for 17.8 MTPA. Phase-I will cost about ₹67,345 crore and is in its early stages. The plant will spread across 2,200 acres covering five villages: D.L. Puram, Butchirajupeta, Vempadu, Chandanada, and Rajayyapeta in Nakkapalli Mandal. This site falls on the East Coast Economic Corridor from Tuticorin to Kolkata, providing strong industrial connectivity. Water needs are set at roughly 135 million liters per day. Most water will come from the Polavaram Left Main Canal via an underground pipeline. Additional water will come from treated iron slurry water and recycled wastewater on site. Power demand will total 867 MW. About 227 MW is planned from captive power, with the rest drawn from the grid. AMNSIL is developing a 244 km iron ore slurry pipeline from NMDC's Bailadila mines in Chhattisgarh. It will be diverted near Peddapeta village and extended 54 km to the plant location in Rajayyapeta. The company has prepared a ₹3,540 crore environmental management plan, with ₹355 crore in yearly costs, to ensure sustainability. The plant will use blast furnaces and a basic oxygen furnace (BoF). These methods are known for high productivity and are better suited to large integrated steel plants than electric arc furnaces or combined furnace technologies. Originally, AMNSIL considered three locations for the ISP: Nakkapalli, Mulapeta in Srikakulam, and Vodarevu in Bapatla. Nakkapalli was chosen due to its closeness to the Visakhapatnam industrial hub, superior logistics, and other advantages.