chartexchange

Andhra Pradesh to Get 8 New Industrial Clusters Across 458 Acres With ₹154 Crore Investment: Check Areas and Property Prices

Trade Brains | Sep 29, 2026 6:30 AM EDT

Andhra Pradesh is developing 8 industrial clusters through APIIC, with grant support from the Central Government's MSE-CDP scheme. APIIC stands for Andhra Pradesh Industrial Infrastructure Corporation. It is the state government body that provides infrastructure by developing industrial areas. MSE-CDP is a Central Government scheme for micro and small enterprises. It gives grants to set up common facility centres and to build or upgrade infrastructure in industrial estates.
From the eight industrial clusters, five are brand-new clusters and three are upgrades of existing parks. 
Key Numbers at a Glance

Total clusters: 8
Total land: 458.20 acres
Total project cost: ₹154.07 crore
Central grant: ₹61.51 crore
Biggest cluster: Makavarapalem, 111.44 acres
Costliest cluster: Gandrajupalle, ₹39.85 crore
Smallest cluster: Palakollu, 12.24 acres

Each one is built around an industry which the region already has, from aluminium and silk to cashew, coir and imitation jewellery. Here is where they are coming up and what is around them. 
8 Industrial Clusters in Andhra Pradesh 
1. Makavaripalem-Visakhapatnam
The Makavaripalem industrial cluster covers 111.44 acres in the Anakapalli district, which lies next to Visakhapatnam. The project costs ₹27.72 crore, backed by a Central government grant of ₹8 crore, and focuses primarily on the aluminium and engineering sectors.
Nearby in the same district, the foundation stone was laid on 23 March 2026 for a massive ArcelorMittal Nippon Steel plant at Rajayyapeta in Nakkapalli mandal. This Nakkapalli cluster is an essential part of the Visakhapatnam-Chennai Industrial Corridor. The region contains mostly independent residential houses, and plotted lands and is approximately around ₹1,000 to ₹2,118 per sq ft .
2. Kopparthi-Kadapa
Kopparthi is an engineering cluster covering 87.48 acres and costs ₹21.50 crore. It is in Kadapa district, which is also home to the much larger Kopparthy industrial node and this node spans 2,596 acres, located on the Vizag-Chennai Industrial Corridor, and is linked by SH-51 and NH-40. It is also 13 km from Kadapa Airport. The node is expected to bring ₹8,860 crore of investment and 54,500 jobs.
For trade, Krishnapatnam Port is the nearest deep-water port, about 200 km away. Kadapa also lies on the Mumbai-Chennai railway line. The property prices of Kopparthi-Kadapa range from ₹800 to ₹1,265 per sq. ft. 
3. Gandrajupalle-Chitoor
This cluster covers 100 acres and costs ₹39.85 crore, and is in Chittoor district, where food processing is the top industry and textiles come second, including handlooms, power looms and readymade garments. That makes a silk and garments sector a natural fit. The district lies close to Tamil Nadu and Karnataka. Nearby is Sri City, a large industrial city spread over 7,500 acres. The average property price in Chitoor is around ₹6,413 per sq ft.
4. Peddapuram- East Godavari District
This industrial cluster is of 20.60 acres and ₹10.26 crore. Peddapuram already has an MSME park with 68 plots and a Traditional Food Park with 111 plots. The town is now in Kakinada district and is an Industrial Development Area with rice mills, ceramics and biodiesel units. The nearest airport is the Rajahmundry Airport which is about 35 km away. Nearby is the Kakinada Gateway Port, a deep-water port next to the Kakinada SEZ. The property prices average around ₹2,665 per sq ft in Peddapuram area.
5. Mangalagiri-Guntur
This cluster covers 51.83 acres and costs ₹25.38 crore. Mangalagiri is on National Highway 16, in the north of Guntur. It is part of the Vijayawada urban area. It is home to the AIIMS Mangalagiri and the APIIC headquarters. Vijayawada Airport at Gannavaram has been an international airport and the AIIMS campus is about 25 km from it. The average property price is around ₹4,000 per sq ft.

Also Read: Bengaluru Beyond Initiative: Karnataka Plans New IT Parks in 3 Tier-2 Cities - Check Locations & Project Details

6. Machilipatnam- Krishna District
This cluster is around 43 acres and costs ₹15.29 crore. Machilipatnam is the district headquarters of Krishna district, about 60 km from Vijayawada. A six-lane access road is being built. A 300 acre MSME park is also planned at Gilakaladindi for imitation jewellery, aquaculture, Kalamkari and boat making. The prices of the property is around ₹9,463 per sq ft in Machilipatnam.
7. Palakollu- West Godavari District
This industrial cluster is going through upgradation of Coir Park and is of 12.24 acres of ₹7.51 crore. Palakollu is in West Godavari, a district that is called the granary of India, as it produces about half of the state's rice. The same source lists coir products among its growing industries. Well-known names in the district include Vendra paper mills at Bhimavaram and Andhra Sugars at Tanuku. The property prices in this Palakollu is ₹2,666 per sq. ft.
8. Palasa-Srikakulam
The Palasa-Srikakulam industrial cluster covers 31.61 acres and costs ₹6.57 crore. Palasa is a well-known cashew hub, with more than 350 cashew processing units in the region. This is between Srikakulam and Berhampur, so it links Andhra Pradesh to Odisha. The property price in Palasa ₹2,100 per sq ft.
All in all
These clusters matter a lot as each one backs an industry that already exists in its region, such as cashew in Palasa or coir in Palakollu. With ports, airports, highways and industrial corridors coming up nearby, these clusters may find it easier to attract small businesses and jobs. The real test will be how quickly the land is developed and allotted.

Read original article