Policy Framework
Krishnapatnam Industrial Area Prepares Land Allotment and Pricing Policy to Guide Investor Allocations
The AP Industrial Corridor Infrastructure Development Corporation (APICDC), the special purpose vehicle managing Krishnapatnam Industrial Area in Andhra Pradesh, has prepared draft Land Allotment and Pricing Policies that will govern how developed industrial plots are offered to investors. The policies are under internal review and expected to go before the SPV Board for approval.
| Development authority | AP Industrial Corridor Infrastructure Development Corporation (APICDC), formerly NICDIT Krishnapatnam Industrial City Development Limited |
|---|---|
| Activation area size | 2,139.15 acres in Phase 1 |
| Land transferred to SPV | 2,139.15 acres by Andhra Pradesh Government |
| State equity contribution | ₹533.86 crore |
| Project investment target | ₹10,500 crore with 98,000 jobs projected |
| Node location | SPSR Nellore District, 10 km south of Krishnapatnam Port |
| Corridor | Chennai-Bengaluru Industrial Corridor (CBIC) |
| Infrastructure works cost | ₹2,139 crore (approved by Cabinet Committee on Economic Affairs) |
| Environmental clearance | Granted by Ministry of Environment, Forest and Climate Change on 10 May 2022 |
| Foundation stone | Laid by Prime Minister on 8 January 2025 |
What the policies will control
The draft Land Allotment Policy and Pricing Policy are designed to establish transparent rules for allocating developed industrial plots at Krishnapatnam to eligible investors. The pricing policy will set the cost at which developed land is offered, while the allotment policy will define eligibility criteria, application processes, and terms of sale or lease for industrial users across sectors including food processing, automobiles, textiles, chemicals, pharmaceuticals, and electronics manufacturing.
These policies are critical because the node is structured in phases. Phase 1 currently focuses on 2,139.15 acres of activation area in the North Node, the first portion of an eventual 14,200-acre development spread across two sites 60 km apart. Without finalized allotment rules, the SPV cannot begin accepting investor applications or transferring land to end-users.
Status as of May 2026
As of the most recent NICDC project monitoring report dated 31 May 2026, the draft policies have been prepared by the SPV and shared internally for review and concurrence before being formally placed before the APICDC Board. No announcement has been made regarding Board approval or finalization of the policies. Internal trunk infrastructure work is reported as in progress, following the appointment of the EPC contractor in February 2024.
The Prime Minister reviewed the Krishnapatnam project during the 49th Pragati meeting on 24 September 2025, indicating continued national attention to delivery milestones.
Why this matters for the region
Krishnapatnam is positioned as a port-linked industrial city designed to support export and import-oriented manufacturing. Its proximity to Krishnapatnam Port, connectivity via National Highway 16, and 90 km distance to Tirupati Airport make it attractive for companies in logistics-dependent sectors. The allotment policies will determine how quickly land can reach investors and at what price, directly affecting the project's ability to meet its target of ₹10,500 crore in private investment and 98,000 jobs.
APICDC, the renamed SPV, now oversees three nodes in Andhra Pradesh—Krishnapatnam, Orvakal, and Kopparthy—following an October 2024 amendment to its mandate. The allotment framework being finalized for Krishnapatnam may also serve as a template for the other nodes under development.
Infrastructure and approvals completed
The project has secured key clearances: environmental approval from the Ministry of Environment, Forest and Climate Change (10 May 2022), and Government of India approval for Phase 1 infrastructure costing ₹2,139 crore (30 December 2020). The Andhra Pradesh Government has transferred 2,139.15 acres to the SPV against a state equity commitment of ₹533.86 crore. Internal trunk infrastructure work is underway following the appointment of the EPC (Engineering, Procurement, and Construction) contractor.
Development phases
Land use
Frequently asked questions
What is APICDC and how is it related to Krishnapatnam?
APICDC (AP Industrial Corridor Infrastructure Development Corporation) is the special purpose vehicle that oversees industrial node development in Andhra Pradesh. It was formerly known as NICDIT Krishnapatnam Industrial City Development Limited when it managed only the Krishnapatnam node. In October 2024, its mandate was expanded to include Orvakal and Kopparthy nodes, and it was renamed APICDC. It is a 50:50 joint venture between the National Industrial Corridor Development and Implementation Trust (NICDIT, representing Government of India) and APIIC (representing the Government of Andhra Pradesh).
What will the Land Allotment Policy include?
The policy will establish the process for assigning developed industrial plots to eligible investors. It typically covers eligibility criteria for different enterprise types, application and selection procedures, lease or sale terms, payment schemes, compliance requirements, and dispute resolution. For a greenfield industrial city like Krishnapatnam, the policy must balance transparency with flexibility to attract varied investor profiles.
What will the Pricing Policy include?
The Pricing Policy will set the cost per square meter or per acre for developed land, based on factors such as plot size, infrastructure development costs, location, land acquisition costs, and market conditions. Pricing may vary by sector (e.g., manufacturing vs. warehousing) and by plot characteristics. The policy will also define payment terms—lump sum, installments, or lease rental structures.
When will these policies be finalized?
As of May 2026, the policies are in draft stage and under internal review before being placed before the APICDC Board. No official date for Board approval or public announcement has been announced. Timeline depends on Board deliberations and any stakeholder feedback.
How much land is available for allocation in Phase 1?
The Phase 1 activation area covers 2,139.15 acres, of which roughly 55% is planned for industrial use, with the remainder allocated to residential areas, roads, utilities, commercial spaces, and social amenities. The total Krishnapatnam node spans 14,200 acres across two sites, but Phase 1 focuses on the North Node.
What investment and employment is targeted?
The Krishnapatnam node is projected to attract ₹10,500 crore in private investment and create approximately 98,000 jobs over the project lifespan. These figures depend on successful plot allotments and investor commitments to implement projects.
How does Krishnapatnam's location help investors?
Krishnapatnam is located 10 km from Krishnapatnam Port, which is being expanded under the Sagaramala Programme as a coastal economic zone asset. The node is connected to National Highway 16 for road transport, 90 km from Tirupati International Airport, and within 170 km of Chennai Airport. This combination of port, road, and air connectivity is valuable for export-oriented and logistics-dependent industries such as auto components, food processing, chemicals, and electronics.
Sources
- National Industrial Corridor Development Corporation Project Monitoring Report, 31 May 2026
- NICDC – Krishnapatnam Industrial Area, Andhra Pradesh
- NICDC – Krishnapatnam Industrial Area Detailed Information
- National Industrial Corridor Development Programme – Implementation Framework
- KRIS City Official Website (APICDC)
- Krishnapatnam Industrial City Development – KRIS City About Page