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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 cement capacity from 7.23 MTPA to 9.60 MTPA. Dalmia Bharat’s July 2026 announcement describes a ₹3,100 crore second Kadapa manufacturing unit, with 6.1 MTPA of clinker capacity and commissioning expected by Q3 FY28. These are planned capacities and dates, not confirmation that the new unit is operating.
What Andhra Pradesh reportedly approved
The Hans India reported that the state approved a 250-acre allotment to Dalmia Cement (Bharat) Ltd for expansion of its integrated clinker and cement facility at Chinnakommerla, in Mylavaram mandal, YSR Kadapa district. The report says the land would be allotted under the state’s “LA for Others” policy on an actual-cost basis, following a State Investment Promotion Board recommendation at its September 18 meeting. The government order itself was not directly available, so these allotment terms are attributed to The Hans India.
The report says the project covers the existing integrated plant at Chinnakommerla and Dugganpalli villages. It also says Andhra Pradesh amended an approval issued in March 2025, revising the planned post-expansion cement capacity from 7.23 MTPA to 9.60 MTPA. MTPA means million tonnes per annum; these figures describe capacity, not the volume the plant currently produces.
What the new Kadapa project includes
Dalmia Bharat’s July 15, 2026 announcement describes the project as its second Kadapa manufacturing unit and reports an investment of ₹3,100 crore. The company gives planned capacity as 6.1 MTPA for clinker and 9.6 MTPA for cement. Clinker and cement are different production stages, so the figures should not be added together or treated as equivalent measures.
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The announcement says the project is part of an expansion announced in 2025. Its use of “second Kadapa manufacturing unit” refers to the new project; it is separate from the additional 1.0 MTPA cement mill that Dalmia said began commercial production at its existing Kadapa plant in July 2024.
When production is expected to start
The Hans India reported a state implementation schedule targeting commercial production from January 2028. Dalmia Bharat’s company announcement gives a broader target: commissioning by Q3 FY28. Those are projections from different announcements, not evidence that trial production, commissioning or commercial production has occurred.
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The state schedule reported by The Hans India sets out these projected stages:
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- Construction: July 2026–December 2027.
- Machinery erection: November 2026–November 2027.
- Trial production: November–December 2027.
- Commercial production: targeted from January 2028.
The company’s Q3 FY28 commissioning target is not identical to the state-reported January 2028 commercial-production target. Each should be read as the target given by that source, rather than as a confirmed start date.
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How this differs from earlier Kadapa capacity additions
Dalmia reported that an additional 1.0 MTPA cement mill at its existing Kadapa plant entered commercial production in July 2024. The company said the plant had 2.6 MTPA of existing capacity before that addition, and that Dalmia’s company-wide installed capacity reached 46.6 MTPA afterward. That completed mill is distinct from the newer expansion.
A July 2025 company results release described an earlier plan for a 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 later July 2026 company announcement instead describes 6.1 MTPA of clinker capacity, 9.6 MTPA of cement capacity and commissioning by Q3 FY28. The July 2025 figures are historical planning details, not the latest project description.
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What the announcements do—and do not—establish
The land allotment and revised capacity are reported by The Hans India; the company’s release supplies its own project description and target. Together, they indicate a planned expansion, but neither source establishes actual output from the new unit. Dalmia’s announcement also describes the project as designed to produce “one of the world’s greenest cements”; that company claim is not an independent assessment of the plant’s environmental performance.
At the foundation-stone event, Dalmia’s release attributed this statement to Andhra Pradesh minister Nara Lokesh: “We see in Dalmia Bharat a strong partner that wholeheartedly shares our vision of building a globally competitive, future-ready economy through sustainable industrialisation.” It is an event statement, not an independent evaluation of the project.
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Sources
- The Hans India: reported 250-acre approval and project details.
- Dalmia Bharat: July 15, 2026 foundation-stone announcement.
- Dalmia Bharat: July 2024 commercial production at the existing Kadapa plant.
- Dalmia Bharat: July 2025 results release with earlier Kadapa expansion plan.
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