AP Cabinet Approves 466-Acre Land Allotment to Shirdi Sai Electricals at Kopparthy Mega Industrial Hub

What Was Decided

The Andhra Pradesh government approved a land allotment to Shirdi Sai Electricals Limited (SSEL) at the Kopparthy Mega Industrial Hub in Kadapa district. The approval was formalised through Government Order (G.O.) Ms. No. 16 on Saturday, 10 January, by the Industries & Commerce Department, following clearances from the State Investment Promotion Committee on 3 January and the State Investment Promotion Board on 6 January.

SSEL has been allocated 466.35 acres, adjusted down from an initial request of 540 acres due to site constraints, at a concessional rate of ₹8 lakh per acre. The project, located at the Mega Industrial Hub in Kopparthy in Kadapa, promises to produce electrical steel (Cold Rolled Grain Oriented or CRGO), package substations, ring main units, panel boards, wind masts, and related components.

Investment, Jobs and Timeline

It is expected to create 5,000 direct jobs and involves a fixed capital investment of ₹4,864 crore spread across four phases, with full operations slated between January 2027 and April 2028. A separate account of the same Cabinet decision put the project value at around ₹4,914 crore, while the earlier State Investment Promotion Board listing for the SSEL proposal recorded a project outlay of ₹5,571 crore — the different figures likely reflect gross project cost versus fixed capital investment at different approval stages. Among the major approvals in this SIPB meeting were projects by Tata Power (Rs 6,675 crore), Shirdi Sai Electricals (Rs 5,571 crore), Web Sol Renewable Energy (Rs 3,538 crore) and Ramco Cements (Rs 1,500 crore).

Approval Sequence

• 3 January 2026: State Investment Promotion Committee clearance.
• 6 January 2026: State Investment Promotion Board clearance — part of a wider batch; 14 projects cleared by the Andhra Pradesh State Investment Promotion Board with a combined outlay of Rs19,391 crore, aimed at creating employment opportunity to 11,753 youth.
• 10 January 2026: Cabinet-level approval formalised via G.O. Ms. No. 16 by the Industries & Commerce Department.

Incentives Attached to the Allotment

The incentives package, under the AP Industrial Development Policy 2024-2029, is substantial: up to 54.07% of the fixed capital investment, including a 15% subsidy capped at ₹729.6 crore, an 8% employment subsidy up to ₹349.12 crore, power tariff reimbursements, and full net SGST reimbursement on intra-state sales limited to Rs 1,481.7 crore. Additional support includes 30 acres for a railway siding and facilitation for a 100 MW solar plant nearby.

Political Backdrop: TDP's Reversal on SSEL

The allotment drew scrutiny because of the company's political history in the state. While in opposition during the previous YSR Congress Party (YSRCP) regime, TDP leaders, including Naidu and Nara Lokesh, accused SSEL of being a "benami" entity linked to former CM YS Jagan Mohan Reddy and his relatives, including Kadapa MP YS Avinash Reddy. The party had challenged related allotments and contracts in court, alleging irregularities and favouritism.

Earlier TDP allegations against SSEL, documented before it came to power, included claims over transformer pricing and penalty waivers: the party alleged that the Jagan Mohan Reddy government had paid 300 per cent excess to the company for purchase of transformers, alleged a Rs 1.2 lakh-crore scam in a solar tender that went to SSEL, and in October 2023 demanded a CBI probe into the YSRC government's decision to waive a Rs 178 crore penalty levied on SSEL for supply of substandard transformers. It later emerged that SSEL had itself donated to TDP through electoral bonds. Of the Rs 214 crore the TD earned through bonds, Shirdi Sai Electricals was the second highest contributor after Megha Engineering and Infrastructure Limited.

After the January 2026 approval, commentary framed the decision as politically inconsistent. According to sources, a few ministers are understood to have questioned the wisdom of favouring a company which the party had dubbed as Jagan's benami, but the chief minister is learnt to have said that anyone who is willing to invest in Andhra Pradesh is welcome. The allotment of land to SSEL is seen as indicative of the fluid nature of Andhra Pradesh politics, where economic incentives often trump rivalries, and while the project could catalyse growth in Rayalaseema, it risks eroding public trust in TDP's anti-corruption narrative.

Where This Fits: The Kopparthy Industrial Area

Kopparthy is one of the newer National Industrial Corridor Development Programme (NICDP) nodes. The Kopparthy Industrial Area, located in Kadapa District under the Vizag-Chennai Industrial Corridor (VCIC), spans 2,596 acres, is strategically connected by SH 51 and NH 40, is 13 km from Kadapa Airport, and carries an investment potential of ₹8,860 crore. The site is implemented through a Centre-state special purpose vehicle: AP Industrial Corridors Infrastructure Development Corporation Limited (APICDC), a 50:50 joint venture between NICDIT (Government of India) and APIIC (Government of Andhra Pradesh), has been set up for implementation of the Kopparthy Industrial Area project, while NICDC has been mandated to act as the project development company handling pre-feasibility, feasibility and master-planning studies.

The broader park reached a construction milestone in October 2025. The Kopparthy Industrial Area, developed at a project cost of ₹2,136 crore, was among two major greenfield industrial parks that Prime Minister Narendra Modi inaugurated at Kopparthy and Orvakal in Andhra Pradesh. The SSEL allotment is a private-investor plot within this larger notified industrial area, not a separate new city notification.

Other Allotments in the Same Cabinet Session

The SSEL decision was one of several land allotments cleared in the same Cabinet round. In the same Cabinet session, allotments of 149.29 acres (nearly 150 acres) to Ethereal Explorations Guild Private Limited were also approved, along with 120 acres to Vebso Renewables Ltd. in Tirupati, and 25.75 acres to Sangam Dairy.