Rayalaseema emerges as investment hub

275 projects worth over Rs 4.5 lakh crore

Metro India News | AMARAVATI

Andhra Pradesh has attracted proposed investments worth over Rs 4.5 lakh crore across 172 SIPB approved projects in Rayalaseema, while another 103 proposals signed during the CII Partnership Summit, have taken the region's investment pipeline to more than 275 projects capable of generating over 3.5 lakh employment opportunities, sources said on Sunday.

The investment push comes as the Andhra Pradesh government seeks to transform the drought-prone region into a major industrial and manufacturing hub through large-scale investments, infrastructure development and cluster-based industrialisation.

"Rayalaseema is emerging as a major industrial growth engine with investment commitments exceeding Rs 4.58 lakh crore across more than 275 projects, reflecting the government's focus on region-balanced development," sources said.

The government is creating specialised manufacturing ecosystems across Rayalaseema instead of concentrating industrial development in a few locations, while strengthening infrastructure and skilling to generate long-term employment. The launch of the Rs 16,350-crore JSW Rayalaseema Integrated Steel Plant in Kadapa on Friday marked the latest milestone in the region's industrial transformation.

Rayalaseema, once associated with drought, water scarcity and migration despite its abundant mineral resources, land availability and strategic location between Bengaluru, Chennai and Hyderabad, is now at the centre of the state's investment-led development strategy, sources said. The 172 State Investment Promotion Board (SIPB)-approved projects alone are expected to attract investments worth Rs 4.58 lakh crore and generate nearly 2.76 lakh jobs.

Along with the 103 investment proposals signed during the CII Partnership Summit, the projects are expected to create more than 3.57 lakh employment opportunities across the region. Tirupati is emerging as an electronics and advanced manufacturing hub, led by Sri City, which has attracted investments from companies, including LG Electronics, Daikin, Carrier Global and RRP Electronics.

Carrier Global's proposed Rs 1,000-crore facility is expected to generate around 3,000 jobs, while Royal Enfield's Rs 2,500-crore manufacturing complex is expected to strengthen the automotive ecosystem. According to sources, the state government also envisions Tirupati emerging as a Space City with future investments in the aerospace sector. Similarly, Sri Sathya Sai district is attracting major renewable energy investments led by Reliance Industries' Rs 51,300-crore energy project alongside Greenko, Chinta Green Energy, Adani Hydro Energy and HFCL.

Kadapa district is strengthening its position as a steel and mineral-based manufacturing hub with the JSW steel plant, proposed IT cluster and electronics manufacturing ecosystem at Kopparthy. Kurnool district is emerging as a semiconductor and Drone City with the proposed Rs 22,976-crore Indichip Semiconductors project, logistics infrastructure and an expanding drone manufacturing ecosystem.

Likewise, Anantapur district is witnessing investments in defence, aerospace and advanced manufacturing, strengthening its position in Andhra Pradesh's growing defence manufacturing ecosystem, sources said. Chittoor is set to become a footwear manufacturing hub with South Korean company Hwaseung establishing its first India facility through an investment of Rs 898 crore.

The project is expected to generate more than 17,000 jobs and strengthen Chittoor's role in labour-intensive manufacturing, according to sources. At Annamayya district, a Rs 1 lakh crore Global Horticulture Hub has been proposed at Madanapalle to strengthen agriculture and food processing activities.

Nellore district is attracting investments in renewable energy and advanced materials, including Tata Power Renewable Energy's proposed ingot and wafer manufacturing facility. Nandyal is witnessing investments in manufacturing, food processing, logistics and allied sectors, contributing to the diversification of Rayalaseema's industrial ecosystem.

Commercial production at Jonnagiri Gold Mines has revived discussions on establishing a jewellery manufacturing cluster in Kurnool and a mega handloom cluster at Dharmavaram. Among the marquee investments are Reliance Industries' Rs 51,300-crore project, the proposed Rs 25,000-crore Satyavedu industrial development project and Indichip Semiconductors' Rs 22,976-crore facility.

Other major projects include AP NGEL Harit Amrit Limited's Rs 22,000-crore renewable energy project besides investments by Chinta Green Energy, Adani Hydro Energy and Megha Engineering & Infrastructures Limited (MEIL). The investment pipeline is also drawing companies, including RRP Electronics, Apollo Tyres, Premier Energies, Bharat Electronics, NTPC Renewable Energy and several global manufacturers.

Industrial expansion is being supported through industrial parks, plug-and-play manufacturing facilities, logistics infrastructure, reliable power supply and faster single-window clearances, sources said.

Projects such as the proposed Amaravati-Anantapur Expressway are expected to improve regional connectivity, industrial competitiveness and access to ports and major markets. Andhra Pradesh government is also strengthening industry-linked skilling through ITI modernisation, university-industry partnerships and AI-based platforms to prepare local youth for emerging industries. The investment strategy aims to position Rayalaseema region as a major driver of Andhra Pradesh's economic growth while addressing long-standing regional disparities through industrialisation and employment generation, sources added.