Andhra secures investments from Hinduja group for energy and Industrial expansion

A Memorandum of Understanding (MoU) worth ₹20,000 crore has been signed between the Government of Andhra Pradesh and the Hinduja Group to accelerate industrial expansion and clean-energy development across the state. The agreement was formalised during the state government’s global investment promotion tour in London, ahead of the upcoming CII Partnership Summit 2025 scheduled to be held in Visakhapatnam on November 14 and 15.

The MoU was signed in the presence of Mr. Ashok P. Hinduja, Chairman, Hinduja Group; Mr. Prakash Hinduja, Chairman, Hinduja Group Europe; and Mr. Vivek Nanda, Chief Executive Officer, Hinduja Investments and Project Services Ltd. Senior officials from the Government of Andhra Pradesh participated in the signing ceremony. The agreement has been described as a major step toward strengthening Andhra Pradesh’s position as a preferred destination for global investors in clean energy and sustainable industries.

Under the terms of the MoU, investment has been proposed in four major sectors:

• Power Expansion (Visakhapatnam): The existing 1,050-MW HNPCL power plant is planned to be expanded by 1,600 MW (2×800 MW) to ensure stable and reliable power for industrial users.

• Renewable Energy (Rayalaseema): Large-scale solar and wind projects are to be developed to enhance the state’s renewable-energy capacity.

• EV Manufacturing (Mallavalli, Krishna District): A state-of-the-art electric bus and light-vehicle plant is proposed to be set up to strengthen Andhra Pradesh’s sustainable-mobility ecosystem.

• EV Charging Infrastructure (Statewide): A comprehensive charging network is expected to be deployed to support the transition toward electric transport.

It has been clarified that the MoU represents a statement of intent rather than a binding contract. Detailed project reports (DPRs), site identification, and statutory clearances are to be completed before implementation begins. A Joint Coordination Committee is expected to be formed by the state government and the Hinduja Group to monitor project planning, land allotment through the AP Industrial Infrastructure Corporation (APIIC), and policy facilitation through the Industries and Commerce Department.

Following the preparation of DPRs, approvals will be sought from agencies such as APGENCO, APTransco, the New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP), and the Andhra Pradesh Pollution Control Board (APPCB). Groundwork for the first phase—most likely the HNPCL expansion in Visakhapatnam—is anticipated to begin by mid-2026, with other projects such as renewable-energy generation and electric-vehicle manufacturing to follow between 2026 and 2028.

During the same London tour, meetings were held with other leading global companies. Ms. Nikki Grady-Smith, Group Chief Transformation Officer, Rolls-Royce, was met to explore partnership opportunities in civil-aviation Maintenance, Repair and Overhaul (MRO) facilities, and power systems for upcoming data centres, including both traditional power solutions and small modular reactors (SMRs) to ensure reliable and sustainable energy supply.

Discussions were also held with Mr. Chris Fitzgerald, Group Director, International Affairs, Octopus Energy. Cooperation was explored in the areas of renewable-energy generation, data analytics, and smart-grid management, reaffirming Andhra Pradesh’s growing leadership in the clean-energy sector.

These developments have been viewed as part of the state’s wider initiative to attract international investments and strengthen its industrial and technological base. Officials have stated that Andhra Pradesh’s approach to sustainable growth and green innovation continues to draw strong interest from global partners.