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Freedom251 › Blog › Andhra Pradesh

Dalmia Cement Gets 250 Acres in Kadapa; Planned Capacity Raised to 9.6 MTPA

By Freedom251 Team · · 3 min read

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Andhra Pradesh has reportedly approved an additional 250 acres for Dalmia Cement (Bharat) Ltd’s integrated plant expansion at Chinnakommerla in YSR Kadapa district. The reported revision raises the project’s planned post-expansion cement capacity from 7.23 million tonnes per annum (MTPA) to 9.60 MTPA. Dalmia Bharat’s July 2026 announcement puts the new unit’s investment at ₹3,100 crore and says commissioning is expected by Q3 FY28; the state schedule reported by The Hans India targets commercial production from January 2028. Both dates are projections, not confirmation that production has begun.

What Andhra Pradesh reportedly approved

The Hans India reports that the state approved 250 acres for Dalmia Cement (Bharat) Ltd under its “LA for Others” policy, on an actual-cost basis. The approval followed a State Investment Promotion Board recommendation at its September 18 meeting, according to the newspaper. The government order itself was not directly available for review, so the land terms and approval details should be understood as reported rather than independently confirmed.

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The land is for expanding Dalmia’s integrated clinker and cement facility at Chinnakommerla, in Mylavaram mandal, YSR Kadapa district. The report says the project covers the existing plant at Chinnakommerla and Dugganpalli villages.

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How the capacity figure changed

The newspaper says Andhra Pradesh amended its March 2025 approval, replacing the earlier post-expansion cement capacity of 7.23 MTPA with 9.60 MTPA. Dalmia Bharat’s July 15, 2026 company announcement independently describes the second Kadapa manufacturing unit as having 9.6 MTPA of cement manufacturing capacity and 6.1 MTPA of clinker capacity.

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These are different measures: clinker is an intermediate material used to make cement, while cement capacity refers to the finished product. The figures describe planned capacity, not the amount the facility is currently producing.

Figure What it refers to Source and status
250 acres Reported additional land allotment at Chinnakommerla The Hans India, 2026; reported state approval
7.23 to 9.60 MTPA Revised post-expansion cement capacity The Hans India, 2026; reported amendment
6.1 MTPA Planned clinker capacity for the new unit Dalmia Bharat, July 2026 announcement
₹3,100 crore Investment described for the project Dalmia Bharat, July 2026 announcement

When the expanded unit could begin production

The dates differ slightly because the sources describe separate milestones. Dalmia Bharat says commissioning is expected by Q3 FY28. The Hans India reports a state implementation schedule that targets commercial production from January 2028.

The newspaper’s reported schedule breaks down as follows:

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  • Statutory approvals: June–July 2026
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These are projected milestones. Neither the reported state schedule nor the company’s commissioning target establishes that the new unit has started commercial production.

How this differs from Dalmia’s earlier Kadapa addition

The planned second manufacturing unit is separate from an earlier capacity addition at the Kadapa plant. Dalmia’s July 4, 2024 release said an additional 1.0 MTPA cement mill had entered commercial production that month. The company said the plant had 2.6 MTPA of existing capacity before that addition and its company-wide installed capacity reached 46.6 MTPA afterward.

A July 2025 company results release had described a planned 6 MTPA cement expansion at Kadapa, comprising a 3.6 MTPA clinker unit and a 6 MTPA grinding unit, with commissioning then expected by Q2 FY28. The newer July 2026 announcement gives updated project figures: 6.1 MTPA clinker capacity, 9.6 MTPA cement capacity and commissioning expected by Q3 FY28.

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What the announcements establish—and what they do not

The company’s July 2026 release describes a foundation-stone ceremony for the second Kadapa manufacturing unit and identifies the project as part of an expansion announced in 2025. The release also quotes Andhra Pradesh minister Nara Lokesh praising Dalmia as a partner in the state’s industrialisation plans. That is a statement made at the event, not an independent assessment of the project’s environmental performance.

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Dalmia describes the project as designed to produce “one of the world’s greenest cements,” but the announcement does not independently substantiate that comparative environmental claim. The published figures establish the company’s stated project capacity and investment, alongside the state approval and schedule as reported by The Hans India; they do not demonstrate actual output or independently evaluated environmental results.

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Andhra Pradeshcement industryDalmia BharatDalmia CementIndustrial investmentKadapa

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