AMNS India, a joint venture between global steel giants ArcelorMittal and Nippon Steel, has planned to nearly triple its steel production capacity by the end of this decade.

CEO Dilip Oommen confirmed that the company aims to elevate its production capacity to 25-26 million tonnes per annum (Mtpa) by 2030, up from its current output of roughly 9 Mtpa, Realty Plus Magazine reported.

Key expansions include boosting capacity at its Hazira plant in Gujarat, first reaching 15 Mtpa by 2026 and eventually 18 Mtpa. A new greenfield facility will also be built in Rajayapeti, Andhra Pradesh, projected to add another 8.2 Mtpa once it comes online around 2030.

To fund its growth, AMNS India expects to invest 550-600 billion rupees ($6-6.6 billion) between FY26 and FY28, not only in steelmaking facilities but also in allied infrastructure.

This includes expanded pellet production, which the company plans to scale up to around 12 Mtpa each in Odisha and Andhra Pradesh, as well as strategic investments in ports and mining assets to ensure an uninterrupted supply chain.

Meanwhile, AMNS India has committed to developing 7 GW of renewable energy capacity by 2032, aiming to reduce carbon emissions and lower energy costs in steel production.

However, headwinds exist in the sector. Elevated raw material costs and suppressed steel prices have squeezed margins across the Indian steel industry, complicating the financial calculus for major capacity additions, Oommen noted.

In addition, Tata Steel is transforming its Kalinganagar facility in Odisha into its largest production hub, targeting over 16 Mtpa of capacity. With an investment of 50 billion rupees, the site has already more than doubled its output from 3 to 8 Mtpa, punctuated by the installation of India's largest blast furnace.