AP clears 25 projects worth ₹2.08 lakh crore, 21,627 jobs; incentive escrow from December
Andhra Pradesh Chief Minister N. Chandrababu Naidu has directed officials to credit industrial incentives into escrow accounts from December this year, aiming to ensure timely disbursement to industries. The directive came during the 20th meeting of the State Investment Promotion Board (SIPB) held at the Secretariat on Wednesday (August 12, 2026).
Mr. Naidu emphasised that while incentives are essential for attracting industries, the government must also assess their sustainability. He instructed officials to link escrow accounts to industrial incentives for streamlined payments.
The SIPB approved investment proposals for 25 projects involving a total investment of ₹2,08,406 crore across industries, energy, IT and electronics, and food-processing sectors. These projects are expected to generate direct employment for 21,627 people.
With these approvals, the 20 SIPB meetings held so far have cleared 363 proposals involving investments of ₹13.78 lakh crore, with projected employment for 10.86 lakh people.
The Chief Minister asked officials to focus on emerging sectors such as green ammonia, lithium batteries, and robotics, and to undertake studies on measures to attract and promote investments in these areas. He stressed that industrial projects should be planned to promote rural development and that awareness campaigns should counter misinformation about industrial projects.
Referring to data centres in north Andhra, Mr. Naidu clarified that all such centres in the region would require only 3.5 tmc ft of water, and called for steps to dispel misconceptions regarding their water consumption. He also asked officials to continuously monitor industrial development and examine the value added to the State's economy by incoming industries.
The Chief Minister said water would be supplied to industries in Visakhapatnam through the Polavaram Left Canal by gravity. He also suggested that hotels being constructed in the State should have distinctive designs to attract tourists.
Mr. Naidu highlighted that defence-sector projects in Andhra Pradesh are a matter of national pride. He asked officials to facilitate defence projects near Puttaparthi and aerospace projects near Hindupur. He also directed that construction of the Mulapeta port be completed by December for inauguration that month.
He called for integration of logistics, modern warehousing, and cold-chain projects, and said road, rail, and port connectivity is needed to enable horticultural produce from Rayalaseema to reach international markets. Officials were asked to speed up projects covered by investment agreements signed since last year as well as those approved by the SIPB.
The Chief Minister said the remaining 37 MSME parks should be completed by September this year, enabling industrial estates in all 175 Assembly constituencies. He also asked officials to scale up the 'One Family, One Entrepreneur' programme.
The government aims to ensure that approved investments translate into on-ground projects at the earliest, contributing to employment generation and balanced regional development.
