NICDC Issues Notice to Proceed for Common Infrastructure Works at Orvakal Industrial Area

What was decided

The India Investment Grid (IIG) project tracker records a Central Government project titled "Common Infrastructure for Industrial Parks" at Orvakal, Kurnool, moving to Notice to Proceed status on 30 October 2025, with a project window running to 30 October 2028 and a total project cost listed as USD 350.31 million.

This tracker entry corresponds to a specific contractual event: NICDC's programme documentation shows that for the Orvakal Node, an EPC tender for trunk infrastructure works was floated by the SPV on 28th Apr 2025 and LOA has been issued to M/s GVPR Engineers Ltd on 9th Oct 2025 for ₹1,197 Cr, with the EPC Contract Agreement executed between M/s GVPR Engineers Ltd and APICDC (SPV) on 30th Oct 2025. The 30 October 2025 date is the point at which the contractor was cleared to begin site mobilisation and design work — the practical meaning of "Notice to Proceed" in this context.

Which body took the decision

The contracting authority is the project Special Purpose Vehicle, not NICDC directly. The SPV — originally set up for Krishnapatnam — was incorporated on 7 August 2018 with equal equity of APIIC (GoAP) and NICDIT (GoI); its mandate, earlier limited to Krishnapatnam, was expanded to Orvakal and Kopparthy through an SSA/SHA amendment dated 30 October 2024, after which it was subsequently renamed "AP Industrial Corridor Infrastructure Development Corporation."

Ahead of the EPC award, the SPV had already appointed a Programme Manager for New Cities: LOA issued by SPV for Programme Manager for New Cities (PMNC) on 27th March, 2025, with Haskoning DHV holding that role. The tender for the trunk-infrastructure EPC contractor was floated under Tender Notice covering "PROGRAMME MANAGER FOR NEW CITIES (PMNC) FOR INFRASTRUCTURE DEVELOPMENT OF ORVAKAL INDUSTRIAL AREA AT KURNOOL DISTRICT IN ANDHRA PRADESH UNDER HYDERABAD BENGALURU INDUSTRIAL CORRIDOR (HBIC)" issued by APICDC.

Operative details: area, cost and boundaries

The works apply to the Phase 1 "Activation Area" of the Orvakal Node. Programme documents describe the node's overall scale and phasing: a consultant for Detailed Master Planning and Preliminary Engineering for the Orvakal Node, 9,305 Acre, was appointed in January 2021, wherein GoAP proposed 4,742 Acre of land to be developed under the NICDIT framework, out of which 2,621 Acre was proposed as Phase 1 Activation Area (2,346 Acre already in possession of the State Govt.). Environmental clearance for this first cluster was obtained earlier: EC for the Phase 1 Guttapadu Cluster was granted by MoEF&CC on 11th November 2020.

The technical scope tendered for the EPC works includes internal road networks, sewerage and effluent systems, and power infrastructure. Specifications call for 30m ROW roads proposed as dual carriageway with a narrow median, featuring walkway, cycle track, utility corridor and drains, with the sub-arterial road running approximately 17.53 km, plus approximately 35.92 km of HDPE pipeline for effluent and sewage collection from industrial plots, conveying it to a Common Effluent Treatment Plant. The activation area itself is formally demarcated: the survey scope covers the complete boundary of 10.61 sq km, to be marked with permanent boundary stones engraved "APIIC OIA".

On land and funding progress, by the latest available programme update, 1,292 acres of land had been transferred by the State government to the Project SPV, with matching equity amounting to ₹500 crore released, and a 300-acre area in the southern part of the site has been designated for a 'Drone City'.

Practical effect and what happens next

Following the contract signature, work moved from paperwork to physical mobilisation. Programme reporting confirms that site establishment works, C&G Works, and design preparation were initiated by the EPC contractor, and a formal kick-off meeting for the EPC contract for the Orvakal and Kopparthy Industrial Areas was held under the chairmanship of the CEO & MD, NICDC, on 24th December 2025.

The award follows a high-profile ground-breaking: the launch followed the foundation stone laying of the Kopparthy and Orvakal Industrial Nodes by the Prime Minister on 16 October 2025. Separately, the Drone City component within Orvakal has been publicly launched: the Union Commerce Minister announced the launch of India's first Drone City at Orvakal, an initiative expected to generate over 40,000 jobs and house the world's largest common drone testing facility.

For investors and local stakeholders, this Notice to Proceed means the trunk-level roads, sewage/effluent network and power infrastructure for the first 2,621-acre activation area are now under active construction rather than tendering — a precondition for plot-level industrial allotments to begin. As of January 2026 reporting, this remains a construction-stage project; it is not yet operational or ready for plot handover.

Wider project context

Orvakal was formally approved as an industrial smart city node in 2024. At that time it was reported that the Union Cabinet approved 12 new project proposals under the National Industrial Corridor Development Programme with an estimated investment of Rs 28,602 crore, of which 2,621 acres would be allotted at Orvakal with Rs 2,726 crore to be spent, aimed at providing employment to 45,000 people.

By the time of the October 2025 foundation-stone event, the publicised scope had grown: OIA is spread across 2,621 acres in Kurnool district and envisioned as an integrated, self-sustaining industrial township combining industrial, residential, commercial and social infrastructure, with the Prime Minister inaugurating the Kopparthy and Orvakal parks together in a combined investment of ₹4,920 crore announcement, and OIA separately cited as carrying an investment potential of about ₹12,000 crore, catering to sectors including automobile components, renewable energy, aerospace and defence, electrical and electronics, textiles and apparel, pharmaceuticals, and gems and jewellery. Note that funding figures cited across sources (Cabinet-approval estimate, EPC contract value, IIG total project cost) refer to different scopes and stages of the project and should not be treated as interchangeable.

The site itself sits in Orvakal Mandal: spread between Orvakal, Uppalapadu, Guttapadu, Meedivemula and N. Konthalapadu villages, bordered by Uppalapadu to the south, Guttapadu to the east, an unmettled road to the west and stony waste/scattered boulders to the north, with connectivity via NH40, NH44 and the Kurnool Bypass.