Practically 20 years after reworking Hyderabad into India's rising/potential tech capital, Naidu, after bifurcation, is trying to do the identical with Amaravati — this time, with a brand new technology of industries and a brand new face main the pitch: his son, Nara Lokesh. The duo has been profitable in bringing giants like Google, Brookfield, and so on., to Andhra's turf.
On the upcoming CII Partnership Summit in Visakhapatnam, Andhra Pradesh will unveil 410 Memorandum of Understanding (MoUs) value practically ₹9.8 lakh crore, promising to create about 7.5 lakh jobs. “We're not signing any MoU which isn't true in spirit. Each MoU is being vetted and due diligence is being finished,” Lokesh informed ET lately.
It's considered one of India's largest state-led funding drives in latest reminiscence. The numbers are massive, and this can possible place Andhra as the brand new magnet for superior manufacturing, inexperienced vitality, semiconductors, AI and aerospace. Nonetheless, the execution charge of the initiatives could be one thing to be careful for.
From Hyderabad to Amaravati, is that this revival of CBN's imaginative and prescient?
In some ways, Naidu's undertaking in Amaravati is a continuation of the developmental narrative he began within the late Nineties. Again then, he had reworked Hyderabad from a bureaucratic capital into an IT-driven metropolis, drawing giants like Microsoft, Dell and Oracle. He did this by way of a mix of coverage reforms, infrastructure growth and investor-friendly initiatives like providing land at concessional charges. He additionally actively courted international IT corporations by way of roadshows and private outreach. The creation of HITEC Metropolis, strong energy and telecom infrastructure and a concentrate on skilling native expertise created an ecosystem the place worldwide corporations might arrange operations effectively, turning Hyderabad into a reputable different to Bengaluru and Chennai.
Additionally Learn: Andhra Pradesh to ink 410 MoUs value Rs 9.8 lakh crore, start work in a 12 months Reduce to as we speak, he's repurposing the identical components – a mixture of infrastructure, coverage readability, and relentless advertising and marketing however with new components: information centres, AI clusters, and clean-tech corridors.Amaravati, the once-stalled dream capital, has been resurrected. “There shall be no video games below the guise of three capitals. Amaravati is our capital,” Naidu stated in June 2024, signalling a decisive finish to political dithering. The administration has since revived land growth tenders and begun contemporary talks with Singapore consortiums that after backed the capital's grasp plan.
The three‑capitals debate had begun in earnest below the earlier authorities led by Y. S. Jagan Mohan Reddy and the YSR Congress Get together. In December 2019 the state cupboard accredited a proposal to ascertain three completely different capitals—Visakhapatnam as the chief capital, Amaravati because the legislative capital and Kurnool because the judicial capital.
The Lokesh Issue: Velocity, ability and silicon
On the coronary heart of this new story stands Nara Lokesh, the state's IT, HRD and Electronics minister, who has positioned Andhra as a younger, agile and “speed-driven” state. Forward of the CII summit, the Andhra minister famous that each MoU is a dedication to the desires of the state's youth. He additional stated that selecting Andhra Pradesh means selecting velocity, belief, and alternative grounded in Telugu satisfaction.
Additionally Learn: Nara Lokesh pitches Andhra for Aerospace park after Karnataka cancels land acquisition
The state has signed agreements with Oracle to supply AI and data-science coaching to over 4 lakh youth and with Schneider Electrical to arrange ability labs in photo voltaic, automation and robotics. These usually are not add-ons; they're a part of a method to make sure that investments and expertise pipelines develop hand-in-hand.
On the infrastructure aspect, the federal government is fast-tracking industrial corridors and constructing logistics hubs to cut back turnaround occasions. Naidu typically calls it the “velocity of doing enterprise”, a deliberate play on India's Ease of Doing Enterprise narrative.
What additionally stands out is Lokesh's assertive public posture towards neighbouring states— particularly Bengaluru. He has again and again used social media to focus on Andhra's funding traction over Karnataka's infrastructure constraints. After the cope with Google he took a veiled dig at Bengaluru, he posted on X, “They are saying Andhra meals is spicy. Appears a few of our investments are too. Some neighbours are already feeling the burn!”
When Rajesh Yabaji, the co-founder and CEO of logistics start-up BlackBuck, earlier this 12 months expressed his frustration over Bengaluru's pothole-filled roads in a submit on X saying: “ORR Bellandur has been our workplace + house for the final 9 years. Nevertheless it's now very, very laborious to proceed right here. We've determined to maneuver out.”
Lokesh had a proposal for Yabaji to relocate to Visakhapatnam. “Hello Rajesh, can I curiosity you in relocating your organization to Vizag? We're rated among the many high 5 cleanest cities in India, are constructing best-in-class infra, and have been rated the most secure metropolis for girls,” the TDP chief stated.
When Zomato and LAT Aerospace founder Deepinder Goyal introduced his Aerospace enterprise, Nara Lokesh invited him to arrange store in Andhra. “An indigenous gasoline turbine is simply what India wants. Let's construct this in Andhra Pradesh @deepigoyal? We've a best-in-class Aerospace coverage, super-fast approval course of and incentives that may be tailor-made for you.”
When Bengaluru blinked
One of many extra telling moments got here when Karnataka shelved its aerospace park plan, causes for that are a mix of huge‑scale farmer opposition, delicate land use (fertile agricultural land close to Bengaluru), and the political choice to keep away from pressured acquisition.
Lokesh wasted no time. “Why don't you have a look at Andhra Pradesh as a substitute? We've a lovely aerospace coverage, best-in-class incentives and eight,000 acres of prepared land,” he posted, pitching Andhra as the choice.
The subtext was unmistakable. Andhra was prepared to soak up initiatives slipping by way of its neighbours' fingers. That very same opportunism as soon as helped Hyderabad appeal to tech majors throughout Bengaluru's infrastructure crunch within the early 2000s. Now, Naidu and Lokesh are replaying that playbook with aerospace, EVs and renewables as the brand new frontiers.
The Huge Bets: Google, Hinduja and heavy {industry}
Essentially the most high-profile dedication to this point stays Google's ₹88,000 crore data-centre funding in Visakhapatnam, geared toward anchoring a cluster of AI and cloud-infrastructure corporations. The Hinduja Group has pledged round ₹20,000 crore throughout vitality, EVs and renewables. Add to those the proposed ₹80,000 crore metal plant in Anakapalli and you start to see how Andhra's industrial panorama is aiming for diversification slightly than a single-industry mannequin.
As well as, international funding agency Brookfield Asset Administration has stepped into the image: by way of its clean-energy platform (Evren, a three way partnership with Axis Power), Brookfield plans to take a position over ₹50,000 crore in Andhra Pradesh's renewable-energy sector, together with a 1.04 GW hybrid undertaking (640 MW wind + 400 MW photo voltaic) in Kurnool.
In response to the State Funding Promotion Board (SIPB), 11 rounds of approvals have cleared initiatives value over ₹7 lakh crore throughout vitality, electronics, mobility and manufacturing. At this level, for Chief Minister N. Chandrababu Naidu and the entire state, these could also be simply past job-creation numbers, extra like an effort to rebuild Andhra's financial confidence after the post-bifurcation stoop.
What's working and what may not
Up to now, Andhra Pradesh's momentum rests on the next:
- Coverage readability: The federal government has reaffirmed Amaravati as the only real capital, rolled out a single-window clearance system, and outlined a roadmap stretching to 2047 below the “Swarna Andhra @ 2047” plan.
- Infrastructure readiness: Port-led industrial corridors, upgraded energy grids, and township initiatives round Amaravati and Visakhapatnam are being pushed.
- Investor belief: The return of an skilled management, one related to the Hyderabad success story, might have revived company confidence.
- International signalling: The presence of marquee names like Google, Brookfield and Hinduja has strengthened Andhra's credibility amongst international traders and set off a sequence of follow-on proposals throughout allied sectors.
But, the headwinds stay vital. Land acquisition continues to be politically and socially delicate, notably round Amaravati the place earlier protests by farmers nonetheless echo.
Infrastructure bottlenecks in inside districts might restrict the unfold of commercial progress. Fiscal pressures are one other problem as Naidu's authorities is balancing the necessity for investor incentives towards an already stretched state finances.
The political context provides one other layer. Naidu's return to energy after 5 years in opposition has reoriented the state's coverage priorities. Naidu has additionally alleged that the state confronted income losses of practically Rs 7 lakh crore in five-year interval.
In the meantime, opposition events, together with the YSRCP and Congress, have accused the federal government of focusing too closely on marquee initiatives slightly than grassroots welfare.
Additional, the coalition arithmetic on the Centre additionally issues. With the TDP now a key ally of the NDA, Andhra might have an higher hand to get sooner central clearances and better monetary help for infrastructure initiatives. As an example, within the Union Price range 2024 (introduced in July 2024), the Centre earmarked ₹15,000 crore for Andhra Pradesh to assist construct its capital metropolis and help main initiatives below the Andhra Pradesh Reorganisation Act.
