Synopsis: This area is now a fastest-growing investment hotspots in Andhra Pradesh, with 275 industrial projects and an investment of ₹4.58 lakhs. This article delves into the main districts, significant investments and the forces behind rapid transformation in the region.
Regions surrounding Bengaluru, Karnataka border continue to grow with investments in all sectors. Andhra’s Rayalaseema has set itself as one of the most promising growth areas near Karnataka border. Once known as a drought land is now attracting approx 275 industrial projects across renewable energy, manufacturing, logistics and industrial zones. With better infrastructure and strategic connectivity with Karnataka, Telangana and Tamil Nadu, Rayalaseema is making great strides to become a major industrial hub in southern India.
- The Rayalaseema region is one of the three geographical regions of Andhra Pradesh and has seven districts; Anantapur, Sri Sathya Sai, Kurnool, Nandyal, YSR Kadapa, Annamayya and Tirupati.
- It is in the south west part of the state and serves as a gateway between Andhra Pradesh, Karnataka and Tamilnadu.
- It is well connected with major National Highways, Railways and Industrial Roads to Bengaluru, Hyderabad and Chennai.
- It is strategically located and offers an abundance of land, and progressive infrastructure, which has facilitated large-scale investments in renewable energy, manufacturing, logistics and electronics.
Approximate distance from the Karnataka border
- Anantapur: ~55 km
- Sri Sathya Sai (Puttaparthi): ~75 km (Hindupur is much closer, around 15-20 km from the border)
- Kurnool: ~95 km
- Nandyal: ~150 km
- Kadapa: ~180 km
- Annamayya: ~140 km
- Tirupati: ~210 km
Rayalaseema by the Numbers
- Investment pipeline: ~₹4.58 lakh crore.
- Total projects: 275
- Expected employment: Around 3.57 lakh jobs
- Districts covered: 7
- Main sectors: Renewable energy, manufacturing, electronics, food processing, cement, logistics, industrial parks and textiles.
- Strong infrastructure: Good connectivity with Bengaluru, Hyderabad and Chennai with access to all the national highways, rail and industrial corridors.
- Renewable energy concentration: Home to many big solar, wind and pumped storage projects, it is a major renewable energy hub in Andhra Pradesh.
- Industrial development: The region is becoming a hub for domestic and international companies investing in a range of industries, with the government providing incentives and expanding infrastructure.
Major Projects
Greenko integrated renewable energy project, Kurnool: Greenko is working on one of the largest integrated renewable energy projects in the world worth more than ₹30,000 crore at Pinnapuram, Kurnool. The project will be a total of 5,230 MW capacity consisting of 3,000 MW solar, 550 MW wind and 1,680 MW pumped storage, making Rayalaseema a clean energy hub.
JSW Rayalseema integrated Steel Plant, Kadapa: JSW Steel is spending ₹16,350 crore to build Rayalaseema Integrated Steel Plant in Kadapa. The initial capacity of the plant is expected to be 2 MTPA with a capacity expansion potential of 5 MTPA, to create more than 10,000 direct and indirect jobs.
Renewable Energy Parks, Anantapur & Sri Sathya Sai: Anantapur and Sri Sathya Sai are well-positioned to become key hubs for renewable energy with several large solar and wind power schemes currently being developed. The districts will play a key role in Andhra Pradesh’s ambitious investments in 72 GW of renewable energy. Madakasira Solar park: ₹7,000 crore, Yashaswa Power Project: 200 MW, NTPC Solar Park: 1.2 GW.
Green Energy Corridor: The ₹22,000-crore Green Energy Corridor will enhance the power system of Rayalaseema region, with the construction of approximately 2,261 km-long transmission lines with 11GW of solar and 7GW from pumped storage projects.
Reliance New Energy Project, Sri Sathya Sai: Reliance Industries is working on one of Rayalaseema’s biggest clean energy initiatives with a proposed investment of ₹51,300 crore in Sri Sathya Sai district. The project aims to create a cohesive renewable energy environment in the district, such as manufacturing and production of green energy, which will make the district a significant energy corridor. Features 6,600 MW solar power plant with a massive 29GWh Battery energy storage system.
Indichip Semiconductor Project, Kurnool: Kurnool, which is expected to be the semiconductor hub of Andhra Pradesh, is to get the Indichip Semiconductors plant. It will be a ₹14,000 crore investment with a capacity of 10,000-50,000 wafers per month over 2-3years and is poised to bring a semiconductor manufacturing ecosystem to the district, along with the emerging drone and electronics industries.
Royal Enfield Manufacturing Complex, Tirupati: Royal Enfield has proposed building a ₹2,500-crore integrated manufacturing plant in Tirupati. The project will also involve a vehicle manufacturing plant, R&D centre, testing track and vendor park, which will enhance the automotive manufacturing ecosystem in the region. It will add an extra capacity of 9lakh motorcycles to the company’s yearly production and also generate 5,000-15,00 jobs.
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Carrier Global Manufacturing Facility, Tirupati: Carrier Global is spending ₹1,000 crore on the new manufacturing plant at Sri City, Tirupati. The plant will generate approximately 3,000 jobs and will help grow the area’s base of HVAC and electronics manufacturers.
Global Horticulture Hub, Annamayya: The government of Andhra Pradesh has come up with the idea of establishing a Global Horticulture Hub worth ₹1 lakh crore in Madanapalle, Annamayya district. The purpose of the project is to increase horticulture, food processing, cold-chain facilities and agriculture exports in the district making it a hub for agri-business.
Hwaseung Footwear Manufacturing Unit, Kuppam, Chittoor: South Korean footwear manufacturer Hwaseung is setting up its first Indian manufacturing facility in Chittoor with an investment of ₹898 crore. The unit is expected to generate more than 17,000 jobs, one of the biggest labour intensive manufacturing projects in the region. Hwaseung is a primary supplier to global sportswear brands like Adidas.
Reliance Retail Beverage Facility, Kurnool: Reliance Retail is looking to invest a sum of ₹1,622 crore over 80-100 acres to set up a factory for manufacturing packaged beverages, juices and drinking water at Orvakal Industrial Hub in Kurnool. The project will stimulate the ecosystem of food processing and FMCG manufacturing in the district and also generate up to 5,000 direct and indirect jobs.
What’s driving Rayalaseema’s Transformation?
One of the fastest growing industrial belts in Andhra Pradesh, with massive investments secured through 275 projects with an investment of ₹4.58 lakh crore.
- Employment generation: The investments are projected to generate approximately 3.57 lakh jobs in the manufacturing, renewable energy, electronics and other sectors.
- Strategic location: Rayalaseema is well connected with Bengaluru, Hyderabad and Chennai and is also connected to the ports of Andhra Pradesh.
- Diverse industries: Investments include renewable energy, steel, semiconductors, automobiles, electronics, food processing, logistics and textiles, which minimizes reliance on a single industry.
- Infrastructure improvements: Expansion of national highways, airports, rail links and power transmission networks to boost connectivity and logistics cost reduction.
- Renewable energy leadership: The region is becoming one of the biggest clean energy hubs in India with large scale Solar, Wind and Pumped Storage projects.
- Lower business costs: Rayalaseema’s land, large industrial parcels and government incentives are relatively low in costs, which in turn makes it an attractive destination for domestic and foreign investors.
- Long term growth potential: Rayalaseema is poised to be a major contributor to Andhra Pradesh’s industrial and economic development in the next 10 years, in the wake of significant investments being put into place.
Conclusion
Owing to its massive investments of ₹4.58 lakh crore in 275 projects, Rayalaseema is gradually evolving its economic profile. Strategic connectivity, large scale industrial developments and diversified investment pipeline, will help the region emerge as one of the major production and clean energy zones of southern part of India in the coming years.
