Tata Power Picks Odisha Instead of Andhra Pradesh
A fresh debate has emerged over Andhra Pradesh’s industrial ecosystem after Tata Power reportedly decided to establish its ₹6,675 crore, 10 GW manufacturing plant in Gopalpur, Odisha, instead of Andhra Pradesh. According to a senior company official, the decision was taken after evaluating multiple factors, including government support, industrial incentives, and infrastructure availability.
The development has triggered discussions over yet another major industrial project bypassing Andhra Pradesh despite the state’s efforts to attract large-scale investments.
Odisha Reportedly Offered Better Industrial Ecosystem
According to industry representatives, Odisha emerged as a more attractive destination due to its stronger infrastructure, better incentive packages, and proactive government support for industries. The development has raised questions over whether Andhra Pradesh’s Industries Department has been successful in building investor confidence.
Analysts believe that investment decisions of this scale are often influenced by long-term policy stability, ease of approvals, and the quality of industrial infrastructure available to companies.
Questions Over Government’s Investment Claims
The latest development has also revived discussions surrounding the state’s investment claims. Earlier, Andhra Pradesh Minister Nara Lokesh had received widespread publicity after stating that approvals for the proposed ₹1.35 lakh crore Mittal Steel Project were expedited through a Zoom meeting.
However, it later emerged that the preliminary groundwork for the project had already begun during the previous Y.S. Jagan Mohan Reddy-led government. This has led to renewed debate over the gap between official investment announcements and the actual progress of projects on the ground.
NITI Aayog Ranking Adds to the Debate
The discussion has gained further momentum following the recent NITI Aayog Investment Friendliness Index, in which Andhra Pradesh slipped to the eighth position nationally.
Observers argue that a state which once consistently ranked among the top performers in Ease of Doing Business now faces increasing competition from other states in attracting fresh investments. According to analysts, such rankings can influence investor perception and future industrial decisions.
List of Investment Projects That Reportedly Did Not Materialize
Critics of the coalition government point to several major investment proposals that either withdrew or were reportedly shifted elsewhere after the new government assumed office.
Among them:
- Hindustan Coca-Cola Beverages reportedly withdrew its proposed ₹1,200 crore manufacturing unit in Anakapalli district and shifted the investment to Telangana.
- Azad India Mobility discontinued its proposed ₹1,046 crore green project in Sri Sathya Sai district and reportedly sought a refund of its deposited amount.
- Jinfra Precisions cancelled its proposed ₹1,150 crore investment in Anantapur.
- Jupiter Renewable Energy returned the 142 acres of land allotted in Anakapalli and withdrew its proposed ₹2,700 crore investment.
- iSpace Technologies also discontinued its proposed ₹119.18 crore IT campus project in Visakhapatnam.
These developments have been cited by critics as indicators of challenges in retaining and attracting industrial investments.
Tata Power Decision Fuels Fresh Political Debate
Against this backdrop, Tata Power’s decision to establish its manufacturing facility in Odisha—reportedly citing better industrial incentives and infrastructure—has intensified political discussions over Andhra Pradesh’s industrial policy.
Industry observers say the development has prompted fresh scrutiny of the state’s investment strategy and the performance of the Industries Department. Political critics have also argued that the episode has intensified criticism directed at Industries Minister Nara Lokesh, while the government is yet to present its detailed response to these concerns.
