In a major setback to the Andhra Pradesh government led by Chief Minister N. Chandrababu Naidu, a major renewable energy manufacturing project proposed by the Tata Group for the state has reportedly been shifted to Odisha.
The project, proposed by Tata Power Renewable Energy Limited, involved setting up a 10 GW ingots and wafers manufacturing facility in Nellore district at an estimated investment of Rs 6,675 crore. Ingots and wafers are critical components used in the manufacture of semiconductors and solar cells.
The Chandrababu Naidu government had issued a government order on January 10, 2026, approving a wide range of incentives for the project under its industrial promotion policy.
The state government had projected that the facility would generate employment for around 1,000 people and become a key part of Andhra Pradesh’s renewable energy manufacturing ecosystem.
According to the government order, the Naidu administration agreed to provide an investment subsidy amounting to 38.4 per cent of the eligible fixed capital investment, subject to a ceiling of Rs 2,225.8 crore.
The subsidy was to be disbursed in instalments over five years after the commencement of commercial production.
In addition, the state government approved an electricity tariff reimbursement of Rs 1.50 per unit for 10 years, along with several other fiscal concessions aimed at attracting the investment.
The project was planned to be established in the IFFCO Special Economic Zone in Nellore district under an agreement previously signed between the state government and Tata Power Renewable Energy.
Despite the generous incentive package, Tata Power Renewable Energy has reportedly decided to establish the project in Odisha.
The development has surprised many within the Naidu government, particularly as the Chief Minister has repeatedly highlighted the state’s investor-friendly policies and claimed that Andhra Pradesh offers incentives unmatched by other states.
According to The Economic Times, Tata Power shifted the project after Odisha offered a more attractive incentive package. However, sources in the Naidu government reportedly attributed the development to political factors.
Interestingly, both Andhra Pradesh and Odisha are governed by parties that are part of the BJP-led National Democratic Alliance at the Centre.
Despite Andhra Pradesh being an NDA partner, the BJP-ruled Odisha government has succeeded in attracting a prestigious project that had already received approval in Andhra Pradesh.
The development has placed both Naidu and his son, Nara Lokesh, in an uncomfortable position, as publicly attributing the project’s relocation to political pressure could create friction within the NDA.
