Orvakal Industrial Hub Gets Union Approval as NICDP Node, But Water Pipeline Lags Since 2021 Launch

The 2021 State Initiative and Expansion

The YSRC government initiated the mega industrial hub in March 2021, initially covering around 4,800 acres and later extending it to 10,000 acres as part of the Hyderabad Bengaluru Industrial Corridor (HBIC) initiative. The hub was positioned across five villages in Kurnool district. The proposed Mega Industrial Hub at Orvakal village at Kurnool district admeasures an area of approximately 9800 acres spread across 11 villages and 8 distinct land parcels located off NH 40, though official figures vary between sources depending on land acquisition status at the time of reporting.

Union Cabinet Approval, August 2024

Andhra Pradesh will add two more industrial smart cities Orvakal and Kopparthy to its necklace of smart cities as the Union Cabinet has taken a landmark decision to approve 12 new project proposals under the National Industrial Corridor Development Programme (NICDP) with an estimated investment of Rs. 28,602 crore. In Orvakal industrial hub, 2,621 acres will be allotted and Rs 2,726 crore will be spent to provide employment to 45,000 people. Union Minister K Ram Mohan Naidu announced this in New Delhi, saying the Central government is committed to the development of Andhra Pradesh.

Water Pipeline Project: Three-Year Delay and Stall

The pipeline-laying works for water supply from Muchumarri to the Orvakal mega industrial hub, which started this year, are delayed due to a lack of special attention. Though the pipeline works began by the end of January this year, no major progress is evident. The construction of pipelines, initiated at a cost of 288 crore, aims to bring Krishna waters from Muchumarri to Orvakal, covering 57km. The works were delayed due to the elections in March this year and the subsequent change in government. The water pipeline project was originally laid out in October 2022 by former Finance Minister Buggana Rajendranath Reddy.

The entire project, including the installation of reservoirs, intake well, pipeline, and motors, will be completed in two years at a cost of Rs. 428 crores.

Master Plan and Land Use

In a notification issued through a government order (GO) on Monday, N Yuvaraj, secretary to the government, said the Andhra Pradesh Industrial Corridor Authority approved the final master plan for the land use pattern, comprising 52 per cent of the land being utilised for industrial purposes. This approval came in July 2025, clarifying the official development framework after four years of planning.

What's Changed: State vs. Central Control

The August 2024 Union Cabinet approval marks a significant shift. The hub was initially a state-level (YSRC) initiative developed through the Andhra Pradesh Industrial Infrastructure Corporation (APIIC). With NICDP approval, it becomes a central priority project. The 2,621-acre NICDP node is a subset of the larger 10,000-acre hub; NICDP will fund and oversee core infrastructure and attract major industrial tenants, while the broader state project continues in parallel. This dual structure is common in India's corridor development model.

Employment and Investment Projections

APIIC has prepared a plan to develop Orvakallu Industrial Park as a multi-product park with the funds from the National Industrial Corridor Development and Implementation Trust (NICDIT), a Central government agency. This is expected to provide employment to 62,000 people directly and 77,000 people indirectly. Investment commitments include Rs1,800-crore investment by People Tech Enterprises on an EV park, the first of its kind in the country at Orvakal, announced for launch in 2025.

What Comes Next

As of November 2024, the Collector directed officials to complete water pipeline and internal road works on a defined timeline. The proposed support for Micro, Small, and Medium Enterprises (MSMEs) within the hub, which comprises 198 plots in 43.9 acres, has not materialised. While around 50 plots have been allotted, construction work is yet to commence due to inadequate infrastructure. Full operationalisation depends on completion of water, power, and road connectivity by APIIC and NICDIT. The EV park and pharmaceutical sector are expected to be the first anchor tenants if infrastructure keeps pace.