Rayalaseema’s Industrial Boom: Inside Dalmia Bharat’s Massive Green Cement Expansion in Kadapa - AP Events

The industrial landscape of Andhra Pradesh is shifting gears toward a sustainable future. In a major announcement, Andhra Pradesh Chief Minister N. Chandrababu Naidu confirmed a monumental expansion of Dalmia Bharat’s cement operations at Chinnakomerla village in the Kadapa district.

Expressing his enthusiasm, CM Chandrababu Naidu noted:

"This expansion will create around 2,000 direct and indirect jobs, further strengthen Rayalaseema as a manufacturing powerhouse, and reinforce Andhra Pradesh’s position as a preferred destination for sustainable industry."

With the foundation stone officially laid, this massive infrastructure project marks a collaborative leap forward for the state government and the private sector. Let’s dive into what this expansion means for Rayalaseema’s economy, the job market, and the future of green manufacturing in India.

Nara Lokesh Lays Foundation Stone as Chief Guest

Highlighting the state government's active push for industrialization, Minister for Information Technology, Electronics & Communications, and Human Resources Development, Nara Lokesh, attended the program as the Chief Guest. Alongside Dalmia Bharat’s Managing Director and CEO, Puneet Dalmia, Minister Lokesh formally unveiled the foundation plaque and performed the bhoomi puja for the Line-2 expansion.

Addressing a large gathering of workers, engineers, and local leaders, Lokesh emphasized that Andhra Pradesh has successfully attracted nearly 25 percent of India's total industrial investments over the last two years.

"The first investment comes with belief in opportunities. The second investment comes with confidence built on experience," Lokesh stated, praising Dalmia Bharat's continued faith in the state's economic stability.

He further noted that the government is rolling out aggressive skill-development initiatives to ensure the youth of Kadapa are fully trained and ready to absorb the technical jobs emerging from this rapid regional boom.

Powering Rayalaseema: The Numbers Behind the Expansion

Located in the Mylavaram mandal of Kadapa, this expansion will turn the existing facility into the company's largest integrated manufacturing site in southern India. Scheduled to be fully operational by the third quarter of the financial year 2027–2028 (Q3 FY28), the expansion will more than double the facility's existing capacity.

Metric	Pre-Expansion Capacity	Post-Expansion Capacity
Clinker Production	2.5 MTPA (Million Tonnes Per Annum)	6.1 MTPA
Cement Production	3.6 MTPA	9.6 MTPA
Investment Outlay	—	₹3,100 to ₹3,478 Crore

Beyond the baseline economic metrics, this massive capacity hike positions Kadapa—traditionally deemed an economically quiet pocket—as a primary driver of the state's heavy manufacturing output.

Employment and Micro-Economies: Creating 2,000+ Opportunities

One of the most immediate benefits of this mega project is its local economic footprint. The capital infusion is set to generate thousands of direct and indirect jobs, heavily favoring local youth, skilled workers, and technical professionals.

However, the employment wave doesn't stop at the factory gates. The influx of industrial operations creates a cascading effect:

• Allied Industries & MSMEs: Local micro, small, and medium enterprises will scale up to supply raw inputs, engineering services, and maintenance.

• Logistics & Transportation: Moving millions of tonnes of cement requires a massive network of local truckers, fleet operators, and contractors.

• Community Welfare: Dalmia Bharat intends to scale its flagship CSR programs, DIKSHa and Gram Parivartan, to enhance regional education, health, and skill development.

Setting Global Benchmarks for "Green Cement"

What makes this expansion truly stand out is its deep commitment to eco-conscious manufacturing. Rather than building a traditional resource-heavy plant, Dalmia Bharat is designing a next-generation ecosystem to produce some of the greenest cements globally

.

• 80%+ Renewable Energy: The facility will pull the vast majority of its power from renewable sources like solar and wind, tapping directly into Kadapa's growing status as Andhra Pradesh’s green energy cluster.

• Zero Liquid Discharge (ZLD): To safeguard local water tables, 100% of the plant's industrial wastewater will be recycled and reused within the loop.

• Eco-Logistics & Technology: The site features advanced waste heat recovery systems, co-processing of municipal waste, and plans for electric vehicle-based logistics mixed with AI-driven operational tools.

As the first global cement company to collectively commit to the RE100, EP100, and EV100 climate initiatives, this Kadapa unit serves as a blueprint for low-carbon heavy industry.

Why Investors are Choosing Andhra Pradesh

According to Dalmia Bharat's MD and CEO, Puneet Dalmia, the decision to double down on Andhra Pradesh was heavily influenced by the state's current governance model. Industrialists are highlighting the state's "Speed, Stability, and Service" formula. Transparent governance, proactive policy updates, and a strong commitment to the Ease of Doing Business (EoDB) have encouraged major brands to reinvest in the region.

With major projects rolling out side-by-side, Kadapa is transforming from an agrarian pocket into a futuristic, technology-driven industrial hub.

Frequently Asked Questions (FAQs)

1. Where exactly is the new Dalmia Cement expansion located?

The expansion project is located at Chinnakomerla village within the Mylavaram mandal of the Kadapa district, Andhra Pradesh.

2. Who launched the expansion project?

The foundation stone for the Line-2 expansion was officially laid by the Chief Guest, AP Minister for IT, Electronics, and HRD, Nara Lokesh, alongside Dalmia Bharat CEO Puneet Dalmia.

3. When will the expanded plant be operational?

The facility is scheduled for formal commissioning by the third quarter of the 2027–2028 financial year (Q3 FY28).

4. What makes this plant environmentally sustainable?

The facility is designed for low-carbon footprints, relying on more than 80% renewable power, maintaining zero liquid discharge water recycling, and incorporating AI-driven waste heat recovery systems.

5. What will be the final production capacity after the expansion?

Once complete, the plant's capacity will jump to 6.1 million tonnes per annum (MTPA) for clinker and 9.6 MTPA for finished cement, making it the company's largest integrated unit in South India.