AP Govt Greenlights 1,000-Ac Renewable Energy Manufacturing Zone

The Andhra Pradesh government energy department has released a government order approving a ₹1,150 crore government guarantee to state DISCOMs. The order aims to establish a Renewable Energy Manufacturing Zone (REMZ) spread over about 1,000 acres of land.

The zone will be developed by Andhra Pradesh Solar Power Corporation Pvt Ltd (APSPCL) under the AP Integrated Clean Energy Policy, 2024, and will be located across Kunduru (East) Village of Santhamaguluru Mandal and S.L. Gudipadu & Mukteswaram Villages of Ballikurava Mandal in the Bapatla district.

Breakdown of Funding

According to the latest government order, the state has extended:

• ₹600 crore to APEPDCL, in favour of the State Bank of India,

• ₹100 crore to APCPDCL (Union Bank of India)

• ₹200 crore to APSPDCL (Union Bank of India)

• ₹250 crore to APEPDCL, in (Union Bank of India)

Driving Andhra Pradesh’s Clean Energy Vision

The latest funding aligns with the Andhra Pradesh Integrated Clean Energy Policy, 2024, which aims to add over 160 GW of renewable energy capacity and attract investments worth approximately ₹10 lakh crore. This investment is expected to generate about 7.5 lakh direct and indirect jobs, fostering a green economy and an integrated clean energy ecosystem across the value chain.

The policy encourages the large-scale development of Renewable Energy Manufacturing Zones (REMZs) across the state, supporting projects in solar, wind, battery, and electrolyzer manufacturing. It aims to promote the development of both large-scale and decentralized Renewable Energy generation across the state. 

The Managing Director & Chief Executive Officer, Andhra Pradesh Solar Power Corporation, Tadepalli, would take further necessary action accordingly, in coordination with the line departments.

Policy Support and Land Lease Guidelines

To streamline implementation, the state has issued operational guidelines for land leasing under the clean energy policy.

For government or revenue land leases, Andhra Pradesh policy requires developers to pay ₹31,000 per acre per year, with a 5% escalation every two years. The entire amount will be remitted to the Revenue Department, Government of Andhra Pradesh (GoAP).

For private or patta land leases involving the New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP), developers will pay ₹31,000 per acre annually, of which ₹30,000 per acre per year goes to the landowner and ₹1,000 per acre per year to NREDCAP for the first two years. The same proportional structure will continue thereafter, with adjustments based on the scheduled escalations.