Dalmia Bharat Launches ₹3,478 Crore Expansion at Kadapa Cement Plant

Minister Nara Lokesh lays the foundation stone for the second phase of the facility, aiming to boost capacity and generate 700 new jobs in Andhra Pradesh.

KADAPA — Andhra Pradesh Minister for Information Technology, Electronics, and Human Resources Development, Nara Lokesh, laid the foundation stone on Wednesday, July 15, 2026, for a major capacity expansion at Dalmia Bharat’s cement manufacturing facility in Kadapa district. The ₹3,478-crore project marks a significant industrial milestone for the Rayalaseema region, aimed at bolstering the state's manufacturing base while advancing sustainable "green cement" production.

The expansion, located at Chinnakomerla village in the Mylavaram mandal of Jammalamadugu constituency, is set to significantly increase the plant's production capabilities. According to government officials, the project is a key component of the state’s broader strategy to drive industrial growth and foster job creation in the region.

Boosting Production and Sustainability

The expansion project—referred to as "Line-2"—is designed to scale up the plant's current annual production capacity. The facility, which currently produces 2.5 million tonnes (MT) of clinker and 3.6 MT of cement per annum, will see these figures rise to 6.1 MT of clinker and 9.6 MT of cement upon completion.

The project incorporates advanced "green cement" technologies, which aim to reduce carbon emissions and minimize the overall environmental footprint of the manufacturing process. As part of its commitment to sustainability, Dalmia Bharat has announced that 80% of the plant's energy requirements will be sourced from renewable energy. The site will also feature "Zero Liquid Discharge" systems, AI-driven safety protocols, and extensive green belt development covering 33% of the premises.

Economic Impact and Job Creation

Addressing the gathering at the foundation-laying ceremony, Minister Nara Lokesh emphasized that the investment would strengthen the Rayalaseema region's industrial ecosystem. The project is expected to create 700 new direct and indirect jobs, increasing the total workforce at the facility to approximately 1,650 employees.

Furthermore, the expansion is projected to provide a substantial boost to the state’s revenue. According to government estimates, Dalmia Bharat’s annual contribution to the state exchequer through taxes and mining royalties is expected to increase from approximately ₹102 crore to nearly ₹325 crore once the new unit is fully operational.

Official Sources

• Andhra Pradesh State Government: Press releases regarding the industrial expansion and employment generation targets.

• Dalmia Bharat Limited: Corporate disclosures and sustainability roadmaps regarding Phase-II expansion plans.

• District Collectorate, Kadapa: Official site inspections and project administrative oversight.

Why It Matters

The expansion of the Kadapa plant is part of Dalmia Bharat’s larger roadmap to scale its national cement manufacturing capacity to 110–130 million tonnes per annum by FY31. By focusing on green technology and localized capacity building, the project serves as a model for sustainable industrialization in Andhra Pradesh, supporting both the state’s economic development goals and the company’s objective to emerge as a pan-India leader in the cement sector.

Key Facts at a Glance

• Project Investment: ₹3,478 crore.

• Production Increase: Clinker capacity to reach 6.1 MTPA; Cement capacity to reach 9.6 MTPA.

• Employment: 700 new jobs (Totaling 1,650).

• Sustainability: 80% renewable energy usage and Zero Liquid Discharge systems.

• Economic Contribution: Projected state revenue increase to ₹325 crore annually.

Frequently Asked Questions (FAQ)

What is the "green cement" technology being used? Green cement refers to manufacturing technologies that significantly reduce carbon emissions and environmental impact compared to traditional methods.

When will the expansion be operational? The project is currently in the foundation stage, with capacity additions across several regions—including Kadapa—expected to support the company’s growth targets through FY28.

How many people will this project employ? The expansion will add 700 new jobs, bringing the facility's total direct and indirect employment to approximately 1,650 people.

Is this part of a larger plan for Dalmia Bharat? Yes, this is part of Dalmia Bharat’s national expansion strategy to reach 110–130 million tonnes of capacity by 2031 through various greenfield and brownfield projects.

Source: The Hindu, Deccan Chronicle, Dalmia Bharat Press Releases