Another major project leaves AP
Another major project has slipped away from Andhra Pradesh. Rejecting the incentives and land offered by the state, the company has shifted the project to neighbouring Odisha. This is not a small or little-known firm, but a company belonging to one of India’s biggest corporate groups—the Tata Group. The decision of a Tata Group company to leave the state reflects the extent of the inefficient and unjust governance under Chandrababu Naidu.
GO issued granting incentives to the Tata Group company.
Even after the Andhra Pradesh government issued orders granting tailor-made incentives for setting up a 10-gigawatt ingot and wafer manufacturing unit near Nellore, with an investment of Rs. 6,675 crore, Tata Power chose to leave the state. The unit was intended to manufacture key components used in solar power generation. What is even more striking is that the company moved to Odisha despite that state offering fewer incentives than Andhra Pradesh. This clearly shows that the state has moved away from “speed of doing business” towards an “ease of looting business” environment.
Odisha better than Andhra Pradesh
After comparing the incentives, infrastructure and other facilities offered by both states, Tata Power CEO Praveer Sinha himself announced that Odisha was a better investment destination than Andhra Pradesh.
The Andhra Pradesh government had offered to return nearly 69 per cent of the investment through various incentives. As part of the package, it issued orders granting 38.4% of the fixed capital investment as an incentive. Odisha, however, offered only 30 per cent. Both states also granted a 100 per cent exemption from electricity duty. In addition, the Andhra Pradesh government promised to provide all the infrastructure required for the unit.
Despite such extensive concessions, the company chose Odisha. This shows the extent to which those running the state government have created fear and uncertainty among corporate investors.
Tata Power decided to shift the project nine months after the Government Order was issued, stating that Odisha offered an environment suitable for immediately commencing operations and had all the necessary infrastructure in place. The decision has once again exposed the hollowness of Andhra Pradesh’s claims about a single-window system and the “speed of doing business.”
The project was approved at the 14th SIPB meeting held in 2024. On January 10, 2025, the government issued G.O. No. 11, granting incentives and allotting 250 acres of land to the company.
Officials stated that the government failed to complete even the basic land acquisition process and did not respond to the company’s proposals. Frustrated by the government’s indifference and lack of follow-up, Tata Power ultimately abandoned Andhra Pradesh and moved the project to Odisha.
Rs. 12,890 Cr investments flee even after GO were issued
A company’s investment proposal and detailed project report first go before the State Investment Promotion Committee (SIPC) and then to the State Investment Promotion Board (SIPB), headed by the Chief Minister. After the Cabinet approves the SIPB’s recommendations, formal government orders are issued. When companies still walk away even after clearing all these stages and receiving official approvals, it stands as clear evidence of the state government’s administrative failure.
Since the Chandrababu government came to power, six companies, including Tata Power, have exited Andhra Pradesh even after land was allotted and government orders were issued. They effectively rejected the approvals and walked away from the state. Due to the Red Book regime and the continuing lawlessness in the state, investments worth Rs. 12,890 crore have so far moved out of Andhra Pradesh.
The Union Commerce Ministry recently informed the Lok Sabha that the actual investments received by Andhra Pradesh over the past two years amounted to only Rs. 6,962 crore. This means the value of investments that left the state during the same period is nearly double the value of investments that actually came in.
Companies that left Andhra Pradesh
1. Coca-Cola says Goodbye
Hindustan Coca-Cola wrote to the state government on May 4, 2023, proposing to establish a soft-drink manufacturing unit with a capacity of 6.65 KLPA at Rambilli in Anakapalli district, with an investment of Rs. 1,200 crore. After examining the proposal, the state government issued orders on February 7, 2024, allotting 50.04 acres of land and extending several incentives to the company.
However, after the TDP-led coalition came to power, the company withdrew its investment proposal and shifted the project to Telangana, fearing demands from coalition leaders. Coca-Cola subsequently wrote to the government stating that it would return the 50.04 acres allotted to it and requesting that no land aggregation be undertaken in the company’s name. Following this, Industries Department Secretary N. Yuvaraj issued orders on February 27 this year, cancelling the land allotment.
- Azad Mobility Project stalled: The Chandrababu government’s first SIPB meeting approved Azad Mobility India Limited’s proposal to establish a green project over 70.71 acres at Gudipalli in Sri Sathya Sai district. The project was planned in three phases to manufacture electric three-wheelers, trucks, buses and battery packs. It was projected to bring an investment of Rs. 1,046 crore and create employment for 2,381 people. However, Azad Mobility has now withdrawn from the investment proposal. Following the company’s exit, the government issued orders cancelling the land allotted to it.
3. iSpace shuts shop
iSpace Technologies, which had come forward to invest in Andhra Pradesh, shut down its plans within six months due to the conduct of those at the helm of the state government.
Hyderabad-based iSpace Technologies submitted a proposal to establish an IT campus in Visakhapatnam with an investment of Rs. 119.18 crore, promising employment for 2,000 people. The State Investment Promotion Board approved the proposal on November 7, 2025, and extended several incentives under the AP IT and GCC Policy.
4. GINFRA also walks away
The government itself has cancelled the G.O. issued on June 27, 2025, allotting 121.53 acres to GINFRA Precisions Private Limited at Rs. 8.3 lakh per acre, barely four months after the company was established. Industries Secretary N. Yuvaraj stated in the cancellation order that the allotment was withdrawn at the company’s request because it had failed to pay for the land.
GINFRA had proposed to invest Rs. 1,150 crore in Andhra Pradesh to establish a manufacturing unit for bi-modular charge systems used in 155 mm artillery guns, along with triple-base and single-base propellants. The proposal was approved at the 7th SIPB meeting, following which 121.53 acres at Thammi Samudram in Anantapur district were allotted through orders dated June 27, 2025.
However, the company withdrew from the state. Even eight months after the allotment, it had not paid a single rupee and finally wrote to the government seeking cancellation of the land allotted to it. Accordingly, Industries Secretary N. Yuvaraj issued orders on February 27 this year, cancelling the allotment.
5. Jupiter also exits
The 6th SIPB meeting approved Jupiter Renewables’ proposal to invest Rs. 2,700 crore at Rambilli in Anakapalli district and create employment for 2,216 people. The project proposed a 4.8 GW solar PV cell manufacturing unit and a 1.5 GW solar module manufacturing unit.
Through G.O. No. 85 dated May 23, 2025, the government allotted 142 acres at a concessional price of just Rs. 50 lakh per acre.
Within a year, however, Jupiter made it clear that it did not want the land and would not pay even a single rupee for it. The company also requested cancellation of the allotment made in its name. The state government subsequently issued another G.O. on February 27 this year, cancelling the entire 142-acre allotment.
AP slips to 8th place among investor-friendly states
Until two years ago, Andhra Pradesh ranked first in attracting investments. It has now fallen by eight places. From 2019 to 2023, when rankings were based on investor feedback, Andhra Pradesh consistently held the top position in ease of doing business. However, under the newly introduced Investor-Friendly Index, it has slipped to eighth place.
The rankings were prepared based on feedback from 131 industrialists across the state and an assessment of performance in more than eight sectors. Gujarat topped the investor-friendly states ranking with 56.6 points, while Andhra Pradesh was restricted to eighth place with 48.7 points. Of Andhra Pradesh’s total score, 26.5 points came from data analysis across eight sectors, while 22.2 points were awarded based on the survey.
The state government has been claiming that Andhra Pradesh attracted 25% of all investments received across the country and secured investments worth Rs. 29 lakh crore in just two years. If those claims are true, questions are being raised as to why industrialists gave the state such a poor ranking.
