APIIC Chairman Announces Record 30,000-Acre Industrial Land Allocation Drive, Highlights Kadapa Steel Plant Growth

Record Land Allocation Across Andhra Pradesh

Between 2024 and 2026, nearly 30,000 acres are being allocated, marking the highest ever land allocation for industrial development in the history of APIIC or Andhra Pradesh, said Ramaraju Mantena, Chairman of APIIC, in a statement to media on April 14, 2026. The state is offering land at concessional rates, in some cases as low as 99 paise, to attract investors.

Development is occurring across multiple regions, with Defence projects in Kurnool, a Drone city, and various initiatives in Anantapur, Kadapa, Nellore, and Tirupati.

Kopparthy Industrial Smart City: Designated Facility for Kadapa

Kopparthy is among new industrial smart cities under the National Industrial Corridor Development Programme (NICDP). The Kopparthy Industrial Area, located in Kadapa District under the Vizag-Chennai Industrial Corridor, spans 2,596 acres and is strategically connected by SH 51 and NH 40, 13 km from Kadapa Airport.

The facility is being developed at a project cost of ₹2,136 crore, with proximity to NH-40, NH-716, Kadapa Airport, and ports such as Krishnapatnam and Chennai giving it a strong logistical edge. Investment potential is ₹8,860 crore with a goal of generating 54,500 jobs.

AP Industrial Corridors Infrastructure Development Corporation Limited (APICDC), a Special Purpose Vehicle, has been set up as a 50:50 joint venture between NICDIT (Government of India) and APICIDC (Government of Andhra Pradesh) for implementation of the Kopparthy Industrial Area project.

Kadapa Steel Plant Moves to Construction Phase

Chief Minister N Chandrababu Naidu on July 3, 2026 launched construction work of the JSW Rayalaseema Integrated Steel Plant at Sunnapurallapalli and Peddadanluru villages in Kadapa district, with the integrated steel plant to be developed by JSW Andhra Pradesh Steel Limited in two phases across 1,100 acres with total investment of Rs 16,350 crore.

Phase I involves investment of Rs 4,500 crore, while Phase II brings additional investment of Rs 11,850 crore, taking the plant's capacity to two million tonnes per annum (MTPA). Commercial production is targeted to commence by March 2028.

The facility is designed as a modern Green Steel facility adopting scrap-based Electric Arc Furnace (EAF) technology powered by renewable energy, significantly reducing carbon emissions.

State Strategy: Employment Generation and GST Revenue

APIIC Chairman Mantena framed the land allocation strategy not as subsidy but as employment creation infrastructure. If a company provides jobs for 25,000 people, those 25,000 people come into Vizag city, their purchasing capacity increases, and the state earns massive revenue through GST in coming days, he said. Once companies begin operations, the government will generate huge tax revenue.

The state is focusing on plug-and-play infrastructure, ensuring industries have immediate access to power, water, and transport connectivity. A key feature is decentralized industrialization, with special focus on Rayalaseema where projects such as defence manufacturing units and a proposed Drone City in Kurnool are taking shape, alongside industrial expansion in Anantapur, Nellore, and Tirupati.

Three Major Steel Plants for Andhra Pradesh

The state is bringing three major steel plants into operation or construction: the Vizag Steel Plant, a steel plant near Kadapa, and ArcelorMittal in Nakkapalli. Vizag is becoming an 'Iron and Steel City' like nowhere else in India.