The Andhra Pradesh government has cleared a major proposal for private industrial development by allocating 2,776 acres of land in SPSR Nellore district to IFFCO Kisan SEZ Limited. The project, which is being developed under the state’s Private Industrial Parks Policy 2024-29, carries an estimated investment of ₹870 crore and is expected to generate employment for nearly 70,000 people.
According to the government order, the land has been earmarked at Racharlapadu village of Kodavaluru mandal. IFFCO Kisan SEZ, a subsidiary of the Indian Farmers Fertiliser Cooperative (IFFCO), has proposed to develop the facility as a Private Large Industrial Park (PLIP) with modern infrastructure and integrated facilities. The company had earlier approached the state authorities under the model-I category of the public-private partnership (PPP) framework in line with the new industrial policy.
The Industrial Park Evaluation Committee (IPEC) first reviewed the proposal before forwarding it to the State Investment Promotion Committee (SIPC) headed by the chief secretary. After further scrutiny, the State Investment Promotion Board (SIPB) chaired by Chief Minister N Chandrababu Naidu gave its approval. This marks one of the largest single land allocations under the new industrial park framework since its introduction last year.
The Private Industrial Parks Policy 2024-29 was framed by the Andhra Pradesh government to attract large-scale private participation in industrial development. The policy aims to provide “plug-and-play” industrial infrastructure to investors, enabling them to start operations with minimal delay. It also encourages land pooling mechanisms, allowing farmers to benefit through structured participation in industrial expansion.
Officials said the Nellore project is expected to create a conducive environment for industries ranging from agro-processing and chemicals to logistics and allied services. The planned park will include road connectivity, utilities, and operational services managed under a structured framework for long-term maintenance. This is expected to reduce the burden on new entrants in setting up basic facilities and allow them to focus on business operations.
With its location in Nellore district, the park will be strategically positioned near major transport corridors, including national highways and railway lines. Its proximity to Krishnapatnam Port is expected to provide a logistical advantage for both exports and imports, strengthening Andhra Pradesh’s industrial competitiveness.
The state government has highlighted the importance of such projects in creating direct and indirect employment opportunities. While the developer has committed to generating nearly 70,000 jobs, additional employment is expected to arise through ancillary industries and service providers.
By clearing the IFFCO-SEZ proposal, Andhra Pradesh is reinforcing its broader industrialization strategy, which is aimed at diversifying economic activities beyond agriculture and services. The government has indicated that more such proposals are under consideration, with a focus on attracting both domestic and international investors.
The Nellore industrial park is expected to take shape over the next few years as infrastructure is built in phases. Once operational, it is likely to emerge as a major hub for industrial activity in southern Andhra Pradesh, complementing other growth corridors being developed across the state.
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