The establishment of the JSW Steel plant in Kadapa, Andhra Pradesh, has ignited a political dispute between Chief Minister N. Chandrababu Naidu and former Chief Minister Y.S. Jagan Mohan Reddy. Both leaders and their respective parties are claiming credit for the project's initiation and progress, leading to a contentious debate over who truly deserves recognition for bringing the steel plant to fruition.
On July 3, 2026, Chief Minister Naidu, accompanied by JSW Group Chairman Sajjan Jindal and Union Minister of State for Steel and Heavy Industries Bhupathi Raju Srinivasa Varma, inaugurated the construction of the steel plant at Sunnapurallapalle in Kadapa district. The project, valued at approximately 2,000 crore, is set to be developed in two phases, with an annual production capacity of two million tonnes of steel. Additionally, JSW Neo Energy plans to establish a 3,850 MW solar and wind power project to supply green energy to the steel plant.
During the inauguration, Naidu emphasized the significance of the steel plant for the Rayalaseema region, describing it as a landmark for the area's future. He asserted that his government had removed all obstacles that had previously stalled the investment, stating, "We promised to transform Rayalaseema into a land of prosperity, and we are proving it through action. Earlier, foundation stones were laid in 2019 and again in 2023, but not even a single layer of soil was excavated."
Naidu further highlighted the efforts of the current government, mentioning the allocation of 1,100 acres of land, resolution of infrastructure issues, and obtaining all necessary clearances for the project. He projected that the steel plant would produce two million tonnes of steel in two phases, creating thousands of direct and indirect jobs, and positioning Andhra Pradesh as a major steel-producing state.
In contrast, Y.S. Jagan Mohan Reddy, leader of the opposition YSR Congress Party (YSRCP), strongly contested Naidu's claims. Reddy accused the Chief Minister of "blatant credit theft" and misleading the public regarding the steel plant. He asserted that the groundwork for the project was laid during his tenure, not by the current government. Reddy recounted discussions he had during his 2022 visit to Davos with Aditya Mittal, CEO of ArcelorMittal, which led to a preliminary understanding to establish a steel plant in Andhra Pradesh. He added that the company had agreed to invest 4,800 crore in the Greenko project in Kurnool and that several locations, including Nakkapalli, had been shown to the company and finalized before the elections.
Reddy questioned why Naidu had not addressed the Bulk Drug Park project in Nakkapalli, which was initiated during his tenure after competing with multiple states. He accused the current government of deliberately creating land disputes, causing the project to stagnate and resulting in lost investment and employment opportunities. Reddy criticized the coalition government for failing to fulfill its election promises and for scrapping all previously introduced welfare schemes, stating, "Super six schemes have turned into complete deception."
The political exchange intensified as both parties traded accusations over who deserved credit. YSRCP senior leader Sajjala Ramakrishna Reddy accused the TDP government of "credit theft," claiming that Jagan Reddy had already laid the foundation stone in 2023 and that the current government was merely rebranding an existing project. On the other hand, TDP national spokespersons Deepak Reddy and Jyothsna Tirunagari stated that the previous government had held multiple foundation stone ceremonies without making meaningful progress.
The Kadapa steel plant has been a long-standing project, with its origins tracing back to 2007 when the then Y.S. Rajasekhara Reddy-led Congress government launched the Brahmani Steel Plant. However, the project collapsed after the Obulapuram mining controversy. After Andhra Pradesh's bifurcation in 2014, the AP Reorganisation Act mandated the Centre to examine setting up an integrated steel plant in Kadapa. The Centre later deemed the project financially unviable, triggering protests across Rayalaseema.
The current dispute underscores the ongoing political rivalry between the ruling TDP and the opposition YSRCP, with both parties vying for recognition over the development of the Kadapa steel plant. The outcome of this contention may have significant implications for the political landscape of Andhra Pradesh, influencing public perception and future electoral prospects.