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In yet another instance of states competing against each other for big-ticket investments, the Andhra Pradesh government managed to take away from Telangana a 4 gigawatt (Gw) solar photovoltaic (PV) cell manufacturing facility by Premier Energies.
With an investment of around ₹1,700 crore, it was to be set up at Seetharampur Industrial Park in Telangana’s Ranga Reddy district but will now be located at Naidupeta Industrial Park in Nellore (Andhra).
This comes even after the company reportedly applied for building permissions to set up both a 4 Gw cell facility and a 4 Gw module facility at Seetharampur, with a total investment of ₹3,350 crore.
The company said, in a stock exchange filing, that its 4 Gw solar PV module line will continue to be implemented at the same location in Seetharampur.
In October 2024, the Andhra Pradesh Economic Development Board (EDB) had its initial round of discussions with the Hyderabad-based company and initiated the first round of talks with Premier Energies. Within a span of four months, the state succeeded in giving all the approvals for land at Naidupeta, for the project which is expected to create 2,000 jobs. “We were successful in offering a bigger land parcel, with abundant water availability. Not just that, the proximity of the Naidupeta Industrial Park to Chennai is an added advantage for the company. In addition, Andhra is offering the company a 35 per cent capital subsidy under the AP industrial policy. This means the government will be reimbursing close to around ₹600 crore out of the total investment of around ₹1,700 crore over five years after the commissioning of the project,” said a government source aware of the development.
This comes close on the heels of the reported relocation of key investments from Telangana, like Corning International Corporation to Tamil Nadu and Kaynes Semicon to Gujarat.
After the initial meeting between the company and EDB chief executive officer (CEO) Saikant Verma in October, the site got finalised in December, followed by a detailed project report submission in January this year. Final approval was given in February.
This is an excellent case of “speed of doing business,” after the N Chandrababu Naidu government took charge in Andhra Pradesh, added the source.
The company said in a stock exchange filing that it has been allocated land at a strategically advantageous site in Naidupeta. The Andhra Pradesh Industrial Infrastructure Corporation has granted the company 269.71 acres of land, with 169.71 acres already allotted and an additional 100 acres having been granted in-principle allotment.
“This site will accommodate 4 Gw solar cell topcon along with the 5 Gw silicon ingot and wafer manufacturing facility. It will support the backward integration strategy and ensure a seamless supply chain for both ingot and wafer production as well as PV cell manufacturing,” Premier Energies said in its stock exchange filing.
The total land acquisition cost of ₹162 crore will be financed through the unutilised offer proceeds, previously earmarked for general corporate purposes. This is in line with the company’s funding strategy, it said.
Opportunities Galore
- A 4 Gw solar photovoltaic (PV) cell manufacturing facility was to be set up at Seetharampur Industrial Park in Telangana but will now be located at Naidupeta Industrial Park Andhra
- Another project of 4 Gw solar PV module line will continue to be implemented at the same location in Seetharampur
- In October 2024, the Andhra Pradesh Economic Development Board (EDB) had its initial round of discussions
- Within a span of four months, the state succeeded in giving all the approvals for the project which is expected to create 2,000 jobs
