Andhra Pradesh’s industrial sector has suffered another setback with the proposed relocation of Websol Energy System’s ₹3,538 crore solar manufacturing project from the state to West Bengal. The development has triggered a fresh debate over Andhra Pradesh’s investment climate, industrial policies and the government’s support for major investors.
8 GW Integrated Solar Manufacturing Facility
Websol Renewables Private Limited had earlier proposed setting up a large greenfield integrated solar manufacturing facility at the MSEZ in Naidupeta, Tirupati district. The project was planned with a total manufacturing capacity of 8 GW, including 4 GW of solar cells and 4 GW of solar modules.
The project, involving an estimated investment of ₹3,538 crore, was expected to generate around 2,000 direct jobs in the state.
Project Received Government Approvals
Websol Renewables signed a Memorandum of Understanding (MoU) with the Andhra Pradesh Economic Development Board on November 15, 2025. Government approvals for the project were subsequently granted in January 2026.
However, during the company’s Q1 investors’ meeting held on August 19, 2026, the management reportedly announced its decision to shift the proposed Andhra Pradesh project to West Bengal.
Lower Land Costs Cited
According to information emerging from the company’s discussions, a more favourable manufacturing environment and lower land costs in West Bengal were among the factors behind the decision.
The relocation has raised questions about the effectiveness of Andhra Pradesh’s investment incentives, industrial infrastructure and the assurances being provided to investors.
Other Investment Proposals Under Discussion
The development comes at a time when several major investment proposals in Andhra Pradesh are also being closely watched. Companies including Tata Power, Hindustan Coca-Cola Beverages, Azad India Mobility, Jupiter Renewable Energy, JINFRA Precision and iSpace Technologies have been associated with investment proposals in the state.
Reports that some projects have moved to other states while others have been withdrawn have added to concerns over Andhra Pradesh’s industrial environment.
Investment-Friendly Image Under Scrutiny
Andhra Pradesh had previously built a reputation for performing strongly in Ease of Doing Business and attracting industrial investments. However, the state’s reported eighth position in the NITI Aayog Investment Friendliness Index has now become a subject of discussion in political and industrial circles.
Questions are being raised over how effectively the large investments announced by the government are translating into projects on the ground. There are also concerns about the state’s ability to retain projects for which agreements and approvals have already been secured.
Questions Over Industrial Policy
The shifting of the ₹3,538 crore Websol project is being viewed not merely as an individual corporate decision but also as an issue that could prompt a broader review of Andhra Pradesh’s industrial policies.
Attracting fresh investments is only one part of the challenge; retaining major projects that have already been committed to the state is equally important.
Critics of the coalition government allege that an unfavourable industrial environment and increasing pressure on businesses are discouraging investors from choosing Andhra Pradesh. They argue that the relocation of a major solar manufacturing project could further strengthen concerns about the state’s ability to retain large-scale industrial investments.
Overall, the Websol project’s proposed shift to West Bengal has once again brought Andhra Pradesh’s investment climate, industrial incentives and investor confidence into focus. The key question now is whether the government can address these concerns and ensure that major projects already proposed for the state remain firmly grounded in Andhra Pradesh.
