Tirupati poised for industrial boom with two mega investments

Tirupati : In a significant step towards industrial growth, the state government has approved the establishment of two major manufacturing units in Tirupati district.

Both projects, located in the eastern parts of the district aim to transform the region into a burgeoning industrial hub. The government on Tuesday granted approvals for LG Electronics Private Limited’s Rs 5,001-crore facility in Sri City and Philips Carbon Black Limited’s (PCBL) Rs 3,718 crore plant in the Naidupeta Multiproduct Special Economic Zone (MPSEZ).

The LG Electronics facility in Sri City will focus on producing home appliances such as refrigerators, air-conditioners and washing machines, alongside critical components like compressors and heat exchangers.

This state-of-the-art plant, spread across 247 acres, is expected to generate 1,495 direct jobs and numerous indirect employment opportunities.

The project falls under the state’s Industrial Development Policy (2024-29) and benefits from a comprehensive incentive package, including a 20-year exemption from electricity duty, 50 percent subsidies on power tariffs and full SGST reimbursement on construction activities.

Additional incentives include a 100 percent subsidy on water consumption, waivers on stamp duty and registration fees and a skilling subsidy of Rs 6,000 per worker per month for five years. A capital subsidy over 20 years will further offset the company’s investment.

The project timeline outlines land acquisition and approvals by December 2024, with construction set to begin in January 2025. Air-conditioner production is slated to start in December 2026, followed by refrigerator production in April 2028. Categorised as a ‘Mega Investment’, the LG Electronics facility is expected to anchor a robust white goods manufacturing ecosystem in the region.

In parallel, the government has approved a 116.62-acre land allotment for PCBL’s Rs 3,718 crore project in Naidupeta MPSEZ. The facility will produce New Rubber Black and value-added chemicals, providing direct employment for 200 people and numerous indirect jobs. Land has been allocated at a rate of Rs1,948 per square metre, with the allotment contingent upon the denotification of the Naidupet SEZ. This project is projected to further enhance the district’s industrial profile while boosting economic growth.

The AP Industrial Infrastructure Corporation (APIIC) and the Department of Industries have been tasked with coordinating the implementation of both projects. The government has also directed line departments to ensure expedited approvals and necessary infrastructure support to facilitate smooth execution.

These two mega projects underscore the state’s commitment to fostering industrial development, attracting global investments and creating significant employment opportunities in the region and marks a significant milestone in enhancing the industrial landscape of the Tirupati district. In addition to this, the upcoming works of Srikalahasti node under Vizag-Chennai Industrial Corridor in 2,770 acres will commence soon in the Phase 1. This will further boost industrial output, create employment opportunities, enhance labour productivity and elevate the living standards in the region.