JSW Steel's Rayalaseema Steel Project in Andhra Pradesh officially entered the construction phase on July 3, 2026. Developed by its wholly owned subsidiary, JSW Rayalaseema Steel, the project will be implemented in two phases with a planned capacity of approximately 2 million tons per year, targeting commercial production by March 2028.

The plant is designed to support lower-carbon steelmaking through the use of electric arc furnace (EAF) technology, recycled scrap, high-grade direct reduced iron (DRI), energy-efficient equipment, and renewable energy. Given the limited availability of quality scrap, DRI will also serve as a key feedstock. 

JSW Neo Energy has invested about US$2.11 billion in solar and wind power projects to provide low-carbon electricity, although actual emissions reductions will depend on the final energy mix and raw material sourcing.

The project also includes major infrastructure upgrades, such as a 9.3-mile water pipeline and a 7.5-mile railway connection to Muddanuru station to reduce road transport reliance. 

With construction now underway, stakeholders are closely watching for disclosures on scrap-to-DRI ratios, renewable energy usage, and carbon emissions performance to assess the project's green steel credentials.