Synopsis: Orvakal in the Hyderabad-Bengaluru Industrial Corridor (HBIC) is becoming the hub of major industries with an estimated investment of ₹50,000 crore in the food processing, manufacturing and logistics sector in the coming years.
Orvakal in Andhra Pradesh has started to become a major industrial hub with the Government of Andhra Pradesh aiming for investments of nearly ₹50,000 crore in the industry in various sectors such as food processing, manufacturing, and logistics. The region is being developed as a major industrial centre in the Rayalaseema region with the help of infrastructure development and the increased interest of investors.
Why Orvakal is Becoming an Industrial Hotspot
Orvakal Industrial Node is being created over a stretch of almost 2,621 acres in the Hyderabad-Bengaluru Industrial Corridor (HBIC). The Andhra Pradesh government aims to attract investments of the order of ₹50,000 crore in the region. The node is well-positioned on the NH40, linking to important cities such as Hyderabad (215 km) and Bengaluru (360 km). Orvakal Airport, which began operations in 2021, is expected to enhance the connectivity of industrial and manufacturing units for cargo transportation and the food-processing industry. The government projects that the industrial sector will create more than 45,000 direct and indirect employment opportunities in the next few years. Food processing, warehousing, and manufacturing companies are interested in the large parcels of land, lower operational costs and connectivity to ports and logistics corridors.
Infrastructure boost Supporting Industrial Growth
- Orvakal Industrial Node is being built under Hyderabad Bengaluru Industrial Corridor (HBIC) and has 2,621 acres of planned infrastructure.
- Inaugurated in 2021, Orvakal Airport will enhance industrial cargo transport and investor linkages in the region.
- The node is strategically linked by the National Highway 40, providing better connectivity with Hyderabad, Bengaluru and other key markets in South India.
- Andhra Pradesh is also making efforts to improve the logistics connectivity by establishing industrial corridors, warehousing infrastructure, and road infrastructure projects in Kurnool.
- Located close to ports and freight lines, the area is likely to be suitable for food-processing and manufacturing industries with export potential.
- The government has been providing incentives for the industries, availability of land and quick approvals.Industrial incentives, availability of land and quick approval are being provided by the government to encourage large private investments into Orvakal region.
Economic Impact on Andhra Pradesh
- Over 45,000 man-days of direct and indirect employment is expected in the manufacturing, logistics and food-processing industries due to the Orvakal industrial expansion.
- Given the state government’s target of investments of almost ₹50,000 crore it has planned, Orvakal is one of the biggest industrial development projects in Rayalaseema region
- The proposed large-scale food processing project is anticipated to contribute to the improvement of the agro-economy of the local communities by augmenting their agricultural supply for the project.
- There will also be an improvement in the following if there is more industrial activity: Warehousing demand, Transport and logistics services, MSME supply-chain businesses, Export-oriented manufacturing
- The officials have hoped that the industrial node will help Andhra Pradesh become a formidable force in the manufacturing and food processing industry in the South.
- The development of infrastructure around Orvakal is also likely to boost the economic activities of the area and create job opportunities in Kurnool district.
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Challenges & Future Outlook
- For the complete industrial ecosystem to be developed at Orvakal a massive amount of infrastructure execution is required; logistics parks, roads, utilities and industrial services.
- Many of the projects remain in the proposal/preparation phase, despite the target of spending ₹50,000 crore.
- There is a need for skilled labor in areas such as food processing, manufacturing, and warehousing in the region.
- Existing industrial hubs like Hyderabad, Bengaluru and Chennai may have an impact on investor appeal.
- The timely allocation of land, environmental clearances and policy implementation will be a significant factor in keeping investors’ confidence.
- With proposed investments being approved for success, Orvakal has the potential to transform itself into one of the largest industrial and logistics centres in Andhra Pradesh in the coming decade.
Conclusion
Orvakal will soon become a major industrial and food processing center in Andhra Pradesh with its investment agenda of almost ₹50,000crore. With 2621 acres of industrial development under the Hyderabad Bengaluru Industrial Corridor, and an estimated of more than 45000 jobs, it is drawing in an increasing amount of interest from manufacturing, logistics and agro-processing companies. Once the execution and commitments to investments in infrastructure are as expected, Orvakal could emerge as a major industrial hub in South India.
Written by Boyapati Sai Jasmitha
