Andhra Pradesh Clears Land for Cement Expansion

Andhra Pradesh has approved 250 acres for the expansion of an integrated cement facility in YSR Kadapa district, enabling planned production capacity to reach 9.6 million tonnes a year. The decision could deepen the region’s industrial base, but the scale-up also brings questions around land use, resource consumption, transport infrastructure and the environmental footprint of cement production.

The additional land is being allotted to Dalmia Cement (Bharat) Ltd for its facility spanning Chinnakommerla and Dugganpalli villages in Mylavaram mandal. The approval follows a recommendation by the State Investment Promotion Board and allows the land to be transferred under the state’s ‘LA for Others’ policy on an actual-cost basis. The state has also revised its earlier project approval issued in March 2025. The post-expansion cement capacity has been changed from 7.23 MTPA to 9.60 MTPA, providing the administrative basis for the larger development. The expansion is already moving into the implementation phase. According to the latest project schedule, statutory approvals are planned for June and July 2026, followed by construction through December 2027. Equipment installation is scheduled to run from November 2026 to November 2027, with trial production expected towards the end of 2027. Commercial operations are targeted for January 2028.

The scale of the project matters beyond the factory boundary. Cement manufacturing depends heavily on limestone, energy, water and freight networks, while higher output can increase the movement of raw materials and finished products across surrounding districts. For nearby communities, the quality of roads, water management, dust control and industrial monitoring will therefore be important as construction gathers pace. Public environmental records show that the proposed expansion has undergone central-level environmental appraisal processes. Earlier project documents also covered additional clinker, cement and waste-heat-recovery capacity at the Kadapa site. The project is also being positioned within a broader manufacturing expansion in Kadapa. In July, the company said the new facility would ultimately have 6.1 MTPA of clinker capacity and 9.6 MTPA of cement capacity, with commissioning planned by the third quarter of FY28. 

The state has directed the company’s vendors and suppliers to register for Andhra Pradesh GST, citing the destination-based nature of the tax. This is intended to ensure that the state receives its applicable share from goods and services consumed locally. With commercial production targeted from early 2028, the next phase will be measured not only by capacity added but by how effectively industrial growth is matched with local infrastructure, resource efficiency, environmental safeguards and economic opportunities for surrounding communities.

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Andhra Pradesh Clears Land for Cement Expansion