JSW-APMDC JV gets APPCB consent to fast-track iron ore mining in Prakasam
The AP Mineral Development Corporation (APMDC) and its joint venture partner, AP JSW Steel Limited (JSWSL), are set to accelerate iron ore mining at Konijedu and Marlapadu villages in Prakasam district after receiving the Consent to Establishment (CTE) from the Andhra Pradesh Pollution Control Board (APPCB).
The joint venture, in which JSWSL holds an 89% stake, plans to set up an iron ore beneficiation plant with an investment of ₹1,231.20 crore, including a fixed capital investment (FCI) of ₹1,058.20 crore. The plant will have a run-of-mine capacity of about 5 million tonnes per year and will produce 1.35 million tonnes of high-grade iron ore concentrate annually. The project is expected to have an operational life of around 15 years.
APMDC has issued a notification on July 28 for selecting an agency to conduct a Differential Global Positioning System (DGPS) survey and land classification for the project. The survey is a prerequisite for demarcating the project area and planning the layout of the beneficiation plant, mining pits, and associated infrastructure.
The CTE, issued by APPCB Member-Secretary S. Sri Saravanan, is valid for seven years from May 1, 2026. It is a mandatory clearance that evaluates the proposed project's potential environmental impact and lays down conditions for establishing the plant. The Consent to Operate from the pollution control board is awaited and is expected by the end of this year.
According to a senior APMDC official, the Konijedu-Marlapadu area holds approximately 60 million tonnes of iron ore reserves, and detailed exploration is currently in progress. This resource estimate, based on previous data, underlines the project's long-term viability.
The project has also received permission to withdraw 0.2789 tmc ft of water from the Gundlakamma reservoir to meet its operational requirements. In June 2026, the state government extended incentives under the AP Industrial Development Policy 2024-29, including a 23% investment subsidy on eligible FCI, capped at ₹210.40 crore, and power tariff reimbursement of ₹1 per unit for three years, not exceeding ₹57 crore, for energy procured from APCPDCL.
To mitigate environmental impact, the project will develop a green belt covering 33% of the total project area within the plant premises, with a five to 10 metre wide green belt along the periphery on all sides. The plant site will be selected in accordance with Central Pollution Control Board guidelines, in consultation with the District Forest Officer.
The project is part of Andhra Pradesh's strategy to enhance mineral resource utilisation and boost industrial growth. APMDC, a state government undertaking, is the nodal agency for mineral development in the state. Its partnership with JSWSL, one of India's leading steel producers, is expected to bring technical expertise and operational efficiency to the project.
The proposed mining and beneficiation operations are expected to generate direct and indirect employment opportunities in the region, officials said. The project is likely to become operational by early 2028.
