From defence corridor to quantum valley: How Naidu plans to turn Andhra Pradesh into India’s next big business magnet

Andhra Pradesh Chief Minister N. Chandrababu Naidu has been on a multi-sector campaign to attract large-scale investment and create tens of thousands of jobs, spanning information technology, port-led industrialisation, quantum computing, manufacturing, and defence.

Since returning to power in June 2024, Naidu has held high-level meetings and signed key MoUs with renewed emphasis on transforming Andhra Pradesh into a national economic powerhouse.

Here’s what the CM has been doing to boost business, jobs, and tech in the state.

Defence corridor ambitions

On May 23, Naidu met Union Defence Minister Rajnath Singh in New Delhi to present a strategic vision for developing Andhra Pradesh as a hub for aerospace and defence manufacturing. As per earlier reports, he proposed a Hindustan Aeronautics Limited (HAL) facility at the Lepakshi-Madakasira hub, offering 10,000 acres for producing the Advanced Medium Combat Aircraft (AMCA) and Light Combat Aircraft.

This sparked controversy as Karnataka Deputy Chief Minister DK Shivakumar rejected any suggestion of relocating HAL from Bengaluru. Naidu promptly denied seeking to move the Bengaluru HAL facility, clarifying at the Telugu Desam Party’s Mahanadu conclave on May 29 that his proposal focused on new facilities in Andhra Pradesh rather than shifting existing ones.

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Also Read: AP sought new unit, not HAL relocation: Naidu

Additionally, in his meeting with the Defence Minister, Naidu outlined a plan for five dedicated aerospace and defence zones across the state, including:

• Jaggaiahpet–Donakonda (6,000 acres) for missile and ammunition production
• Lepakshi–Madakasira (10,000 acres) for civil and military aircraft and electronics
• Visakhapatnam–Anakapalli (3,000 acres) for naval equipment and weapons testing
• Kurnool–Orvakal (4,000 acres) for military drones, robotics, and advanced defence components
• Tirupati for R&D in advanced defence technologies

These zones are expected to generate tens of thousands of skilled jobs in defence manufacturing, electronics, drone technology, and research and development. Naidu also sought central support for a DRDO Industry-Academia Centre of Excellence at IIT Tirupati and a common ammunition storage policy.

Shreeja and Mother Dairy to set up processing units in Kuppam, create 8,000 jobs

On May 26, Naidu announced investment plans for his home constituency Kuppam, where dairy firms Shreeja and Mother Dairy will set up processing units. Land has been allotted to both under the Kuppam Area Development Authority (KADA). Shreeja will build a dairy and animal feed processing facility, while Mother Dairy will establish a fruit pulp processing plant.

Together, the projects are expected to create around 8,000 jobs and will directly procure milk and horticultural produce from local farmers, in line with the State government’s Swarna Andhra Vision. Naidu has asked the companies to complete construction and begin operations within 15 to 18 months, stressing the need for inclusive and timely development.

Also Read: Shreeja Milk, Mother Dairy to set up plants in Andhra Pradesh, creating 8,000 jobs

In a meeting with Union Finance Minister Nirmala Sitharaman and Union Jal Shakti Minister CR Patil, Naidu sought support for the Rs 80,112 crore Polavaram–Banakacherla Link Project, aiming to divert 200 TMC of surplus Godavari floodwaters to drought-prone Rayalaseema via reservoirs, lift irrigation, and tunnels through the Nallamala hills.

Naidu emphasised the project’s potential to benefit millions in arid districts, boost agricultural productivity, ensure drinking water supply, and attract industries confident of reliable water access. He positioned the scheme as a potential national model for river-linking.

Clean energy agenda

Meeting Union New and Renewable Energy Minister Prahlad Joshi, Naidu sought support to implement the Pradhan Mantri Surya Ghar Muft Bijli Yojana in Andhra Pradesh, targeting installation of 20 lakh rooftop solar units by 2025. The scheme aims to provide free systems to SC/ST households and subsidies to backward caste families, creating thousands of jobs in installation, maintenance, and manufacturing.

The state’s Clean Energy Policy 2024–29 aims to add 72.6 GW of renewable capacity, including 40 GW of solar power. With central support, Naidu said Andhra Pradesh could reduce energy costs, empower citizens, and lead India’s clean energy transition.

₹31,167 crore investments cleared in April

At the fifth State Investment Promotion Board (SIPB) meeting on April 10, chaired by Naidu, proposals worth ₹31,167 crore from 17 entities were approved across food processing, IT, energy, and other sectors. These are expected to create over 32,600 jobs. Naidu stressed converting investment approvals into actual jobs and production, asking officials to report progress at the next SIPB meeting.

To attract more tech firms, IT Minister Nara Lokesh recommended allocating land to IT companies at nominal rates. Naidu approved revising the IT policy accordingly, signaling a proactive approach to boosting the digital economy.

Also Read: Chandrababu Naidu re-elected as TDP President for next two years

Port-led growth and shipbuilding cluster

On May 14, Naidu unveiled a strategic plan to develop a port-based economy leveraging Andhra Pradesh’s 1,000-km coastline, envisioning a port or fishing harbour every 50 km. This is expected to spur infrastructure development, boost trade, and generate large-scale employment.

A key initiative is the Ship Building and Repair Cluster at Dugarajapatnam, Nellore district, a 2,000-acre project jointly developed by central and state governments. With an estimated central investment of ₹3,500 crore, the cluster will feature dry docks, outfitting jetties, and a ship-lift facility. It aims to attract ₹26,000 crore in total investment and create 5,000 direct and 30,000 indirect jobs. Naidu directed officials to fast-track this project and enhance cargo traffic through Visakhapatnam Port, a crucial industrial driver.

India’s first Quantum Valley in Amaravati

On May 2, Naidu announced plans to establish India’s first Quantum Valley Tech Park in Amaravati, partnering with IBM, Tata Consultancy Services (TCS), and Larsen & Toubro (L&T). The park, scheduled for inauguration on January 1, 2026, will host IBM’s 156-qubit Quantum System Two, India’s most powerful quantum computer.

Naidu hailed the project as a historic milestone that will position Andhra Pradesh at the forefront of the global quantum revolution. The Quantum Valley aims to create an innovation ecosystem inspired by Silicon Valley, integrating academia, startups, corporate R&D, and advanced public services powered by quantum computing.

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