Critics argue that the ₹9.5 lakh crore figure represents proposed investments, not realised funds. The absence of a public dashboard tracking project statuses fuels scepticism.
Published Jun 17, 2025 | 12:00 PM ⚊ Updated Jun 17, 2025 | 12:00 PM
Vice President of Google Global Networking Bikash Koley with Andhra Pradesh Chief Minister Chandrababu Naidu. (X)
Synopsis: The Andhra Pradesh government under CM Chandrababu Naidu says it has secured ₹9.5 lakh crore in investments since June 2024. While several projects have kick-started, environmental clearances and local opposition to land pooling for projects like the ArcelorMittal plant have slowed progress. Here’s where things stand.
In his one year in office, Chief Minister Chandrababu Naidu has focused on building investor confidence to pick Andhra Pradesh as their destination for service and manufacturing. The TDP-led NDA government says that it secured ₹9.5 lakh crore in investments after taking over the reins of power in the state in June 2024.
These agreements, involving 78 large-scale industries, are projected to generate 8.5 lakh jobs, positioning the state as a growing industrial hub. However, questions linger about the actual progress of these investments, the number of industries operational, and the challenges hindering project implementation.
South First looked at where these big-ticket projects stand and what the hurdles some of them seem to be facing.
Of the recent Memoranda of Understanding (MoUs), projects such as Reliance’s CBG plants and the Quantum Valley initiative have made progress, with groundwork or planning underway. High-value projects like AM/NS India and BPCL are in advanced preparatory stages but are facing delays due to land acquisition issues, environmental clearances, and regulatory hurdles. Smaller projects, including those in aerospace, remain in the early planning stages.
Recently, Chief Minister Naidu said, “We are committed to ensuring that 90 percent of the MoUs are translated into actual investments.”
According to Human Resource Department, Information Technology and Electronics Minister Nara Lokesh, the ₹9.5 lakh crore investment comprises ₹9.2 lakh crore from major industrial proposals and ₹13,895 crore from Micro, Small and Medium Enterprises (MSMEs). He announced these figures at a high-level meeting on job creation in Undavalli in the state capital, Amaravati, on 4 June.
Naidu, addressing the State Investment Promotion Board (SIPB) meeting in January 2025, stressed that the government’s commitment to the “Speed of Doing Business” initiative, which aims to expedite project approvals, was vindicated by the string of investment commitments secured.
He said that the government aimed to land ₹50 lakh crore and create 20 lakh jobs by 2029. “We are on course to creating an ecosystem where industries flourish,” he said.
The government claims that several high-profile projects are in advanced stages of implementation. Reliance Industries, led by Mukesh and Anant Ambani, has promised ₹65,000 crore investment in 500 CBG plants across fallow lands, which aligns with the state government’s clean energy policy.
Lokesh said that the CBG plant in the Prakasam district will fetch farmers ₹15,000 to ₹31,000 per acre by way of lease,” while laying the foundation stone. This project alone is expected to create 2.5 lakh jobs, primarily in rural areas.
Important MoUs signed by Andhra Pradesh government
Arcelor Mittal-Nippon Steel India’s ₹1.4 lakh crore integrated steel plant in Anakapalli, with a capacity of 17.8 million tonnes, is another flagship initiative. It was sealed via a Zoom call between Lokesh and ArcelorMittal CEO Aditya Mittal in July 2024. Bharat Petroleum Corporation Limited’s (BPCL) ₹96,000 crore refinery project and NTPC’s renewable energy initiatives have also received clearances, with officials directed to fast-track permissions.
The Lulu Group, which pulled out its ₹2,200 crore project in Visakhapatnam in 2019 due to unfavourable policies pursued by the previous YSRCP government, has returned, showing interest after the change of government in the state. Additionally, Google Cloud’s planned facility in Visakhapatnam and TCS’s IT expansion underscore the state’s growing appeal in the tech sector.
Despite these advancements, not all projects have taken off. The Kadapa Steel Plant, for which both Naidu and former Chief Minister YS Jagan Mohan Reddy laid the foundations, remains stalled.
Naidu had said in the past that the Kadapa steel plant is close to his heart and that he was on the job of grounding it. He had said that he had spoken to the Jindals. Recently, Lokesh said that Kadapa steel plant works would commence shortly as Sajjan Jindal had come forward with investment.
Industries Minister TG Bharat acknowledged similar hurdles during the Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) Excellence Awards on 10 June, when he said that some projects face delays due to land acquisition and regulatory clearances, but the Project Monitoring Units under the Economic Development Board (EDB) are addressing them.
The state government often blames the previous YSRCP regime for investors like the Lulu Group refusing to invest in Andhra Pradesh.
According to sources, environmental clearances and local opposition to land pooling for projects like the ArcelorMittal plant have slowed progress.
Officials are addressing the land acquisition bottleneck. Naidu had said at one of the State Investment Promotion Board meetings recently that skill development and employment for landowners are being assured under the government’s new policy, where those who offer land and those who invest are equally important.
Critics argue that the ₹9.5 lakh crore figure represents proposed investments, not realised funds. The absence of a public dashboard tracking project statuses fuels scepticism. Fiscal constraints are a drag on the state’s enthusiasm for land investments. The Andhra Pradesh Budget 2025-26 estimates public debt to increase to ₹6.40 lakh crore by the end of the financial year 2025-26 (31 March 2026).
As of 31 March 2024, the total outstanding liabilities were reported at ₹7,62,568.45 crore, which included on-budget borrowings of ₹4,87,311.73 crore, off-budget borrowings of ₹1,20,459.61 crore, and guarantees of ₹1,54,797.11 crore.
The debt burden could limit infrastructure spending, critical for grounding investments. Additionally, competition from neighbouring states like Telangana, which leverages Hyderabad’s established infrastructure, poses a hurdle where the Congress-led government is working around the clock to land major investments to prove its mettle.
Even though the NDA government has introduced reforms to address these challenges, the proof of the pudding lies in the eating.
The state government is reviving the EDB with the establishment of sector-specific Project Monitoring Units and WhatsApp-based governance for investor approvals.
Lokesh’s global outreach, including meetings with Adobe’s CEO in San Francisco, aims to bolster Andhra’s tech ecosystem. No one can deny that the government is lacking in effort, but results are yet to roll in.
(Edited by Muhammed Fazil.)
