Chandrababu, Nara Lokesh Face Setback as Tata Power Project Leaves AP!
The prestigious Tata Power Renewable Energy Limited project that was earlier allocated to Andhra Pradesh has now been shifted to BJP-ruled Odisha. Tata Power had originally planned to set up a 10 GW Ingots and Wafer manufacturing project in Nellore district with an estimated investment of ₹6,675 crore. To facilitate the project, the Andhra Pradesh government issued GO No. 11 on January 10, 2026, offering several incentives. The coalition government has repeatedly claimed that it has attracted investments by offering incentives and concessions to IT companies and several other industries on a scale unmatched by any other state. However, the relocation of the Tata Group's ₹6,675-crore project to Odisha is being seen as a major setback for Chief Minister N. Chandrababu Naidu and Minister Nara Lokesh.
What makes the development more striking is that the Andhra Pradesh government had allotted 22 acres of land in Visakhapatnam, valued at around ₹1,000 crore, to Tata Consultancy Services (TCS), another Tata Group company, for just 99 paise. In addition, the government had also issued an order offering substantial incentives to Tata Power. Despite these concessions, the company chose to move the project to Odisha. According to discussions within official circles, political pressure is believed to be the primary reason behind the relocation. A senior IAS officer said that it would have been unlikely for a Tata Group company to back out after completing all the necessary preparations unless there were other compelling reasons.
Under the agreement signed earlier with the Andhra Pradesh government, Tata Power Renewable Energy Limited was to establish the Ingots and Wafer manufacturing project at the IFFCO SEZ in Nellore district. Ingots and wafers are used in the manufacturing of semiconductors and solar cells. The project was expected to generate employment for around 1,000 people, and the company had announced that the facility would have a production capacity of 10 GW. Leading business daily The Economic Times reported that the company shifted the project from Andhra Pradesh to Odisha because the latter offered better incentives. While the company has officially stated its position, Andhra Pradesh officials claim that the real reason behind the move was political pressure. Although the Telugu Desam Party (TDP) is a partner in the NDA alliance, the shifting of a prestigious project originally allocated to Andhra Pradesh to another BJP-ruled state has become a major talking point.
What has also drawn attention is that Chief Minister Chandrababu Naidu, Deputy Chief Minister Pawan Kalyan, and Minister Nara Lokesh have not publicly commented on the issue. According to the government order issued in January this year, the Andhra Pradesh government had approved an investment subsidy of 38.4% of the fixed capital investment, capped at ₹2,225.8 crore. The subsidy was to be disbursed in installments over five years from the commencement of commercial production. In effect, the government had agreed to reimburse ₹2,225 crore out of the project's fixed capital investment of around ₹5,800 crore. It had also approved a power tariff reimbursement of ₹1.50 per unit for 10 years, besides several other incentives. Despite these benefits, Tata Power decided to shift the project from Andhra Pradesh to Odisha.
