AP Govt. Approves Rs 8,719 Crore Manufacturing Projects in Tirupati District

Tirupati: The Andhra Pradesh government has approved two major manufacturing projects to bolster industrial development in Tirupati district.

Government Orders were issued on Tuesday for the establishment of a Rs 3,718 crore unit of the Philips Carbon Black Ltd (PCBL) in the Naidupeta MP Special Economic Zone (MPSEZ) and a Rs 5,001 crore plant of the LG Electronics Pvt Ltd in Sri City. These projects are expected to catalyse the region’s economic transformation.

For the PCBL project, the state has allotted 116.62 acres of land in the Naidupeta MPSEZ. The facility will produce New Rubber Black and value-added chemicals, with the potential to generate direct employment for 200 persons and numerous indirect job opportunities.

The land has been allocated at a rate of Rs 1,948 per square metre. The allotment is subject to denotification of the Naidupeta SEZ.

The LG Electronics facility, spanning 247 acres in Sri City, will manufacture refrigerators, air conditioners and washing machines, along with key components like compressors and heat exchangers. The project promises 1,495 direct jobs, in addition to indirect employment opportunities.

To be set up under the state’s industrial development policy (2024-29), the project will get an incentive package, including a 20-year exemption from electricity duty, 50 per cent subsidies on power tariffs and full SGST reimbursement for construction activities.

Other incentives include a 100 per cent water consumption subsidy, waivers on stamp duty and registration fees, and a skilling subsidy of Rs 6,000 per worker per month for five years.

Additionally, a long-term capital subsidy over 20 years will further offset the company’s investment.

The project timeline indicates that the land acquisition and approvals will be completed by Dec 2024, with construction scheduled to begin in January 2025. Production of air conditioners is planned for December 2026, followed by refrigerators in April 2028.

Categorised as a ‘Mega Investment,’ the LG Electronics facility is poised to anchor a white goods manufacturing ecosystem in the region.

To ensure the smooth implementation of these projects, the Andhra Pradesh Industrial Infrastructure Corporation and the Industries Department have been made coordinators. Line departments have been directed to expedite approvals and provide infrastructure support.

The upcoming Vizag-Chennai Industrial Corridor’s Srikalahasti node, covering 2,770 acres, is set to commence development soon as part of Phase 1.