Nellore Positioned as Key Logistics Hub as ₹3,653 Crore Badvel-Nellore Highway Approved to Link Krishnapatnam Industrial Nodes

Highway Approved to Unify Three Industrial Corridors

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, approved on May 28, 2025 the construction of a 108.134 km long 4-lane Badvel-Nellore corridor at a cost of ₹3,653.10 crore. The corridor will connect Gopavaram village in YSR Kadapa District, located on National Highway NH-67, to Guruvindapudi on NH-16 near Krishnapatnam Port in SPSR Nellore District.

The approved Badvel-Nellore corridor will provide connectivity to important nodes in the three Industrial Corridors of Andhra Pradesh: Kopparthy Node on the Vishakhapatnam-Chennai Industrial Corridor (VCIC), Orvakal Node on Hyderabad-Bengaluru Industrial Corridor (HBIC), and Krishnapatnam Node on Chennai-Bengaluru Industrial Corridor (CBIC).

Significant Distance and Time Savings to Port

The improved route will shorten the existing travel distance to the port by nearly 34 kilometers, reducing it from 142 kilometers to just over 108 kilometers. This will cut travel time by nearly one hour, lower fuel usage and reduce the vehicle operating cost and carbon emissions.

This will have a positive impact on the Logistic Performance Index (LPI) of the country. The project will be implemented under the Design-Build-Finance-Operate-Transfer (DBFOT) model.

Large Employment Impact During Construction and Operation

The project will generate about 20 lakh man-days of direct employment and 23 lakh man-days of indirect employment. Beyond construction, the highway enables operations at three major industrial nodes that collectively unlock ₹31,000+ crore investment potential and ~2 lakh jobs.

Krishnapatnam Industrial Node Advancement

Developed under Chennai-Bengaluru Industrial Corridor (CBIC) on the framework of PM Gati Shakti National Master Plan, KRIS City in Krishnapatnam is poised to become a hub of industrial innovation. The Krishnapatnam Node spans 2,006 acres with investment potential of approximately ₹10,500 crore and employment generation of 1 lakh jobs.

With world-class infrastructure, plug-and-play facilities, and seamless connectivity via NH-16, Krishnapatnam Port, and Tirupati Airport, it offers a competitive edge for industries.

Port Infrastructure Driving Coastal Logistics Growth

Ramayapatnam Port is set to reach a significant milestone, with over three-fourths of its works completed as of November 2025, paving the way for commissioning of Phase I of the port in the first half of 2026. The Greenfield port, being constructed at a cost of ₹4,922 crore across 2,000 acres near Chevuru in Gudluru mandal, is designed to handle 138 million tonnes of cargo per annum, with four multipurpose berths in the first phase and 19 additional berths planned in the second phase.

A ₹3,550 crore highway near Mypadu Beach is also boosting the coastal logistics ecosystem.

Nellore Real Estate Market Positioned for Growth

Nellore's overall real estate market is projected to grow 15% to 20% and the average property price is around ₹6,982 per sq ft, with rental yields of 3.5% to 4% for areas like Gorantla and Tada. Growth is driven largely by industrial and port-linked employment rather than IT jobs.

Combined with access to Krishnapatnam Port, this positions Nellore as a major logistics hub on India's east coast.

Next Steps and Timeline

The Badvel-Nellore highway project is now in the procurement phase under DBFOT tendering. Ramayapatnam Port Phase I commissioning is targeted for the first half of 2026. Krishnapatnam Industrial Node continues infrastructure execution at its 2,139-acre activation area, with broader Phase-1 development planned to follow. All three industrial corridors remain in development and construction phase, with completion timelines extending through 2027–2028 for full operational status.