Home/Corridors/VCIC/Chittoor node (Srikalahasti–Yerpedu / Naidupeta)

Chittoor node (Srikalahasti–Yerpedu / Naidupeta)

ApprovedAndhra PradeshVCIC auto/engineering node — master-planned, developer selection under way
11,000 acresArea

Chittoor is the VCIC’s auto-and-engineering node, master-planned at ~11,000 acres and positioned on the strength of its geography: equidistant from Chennai and Bengaluru, served by NH-16 and two ports, and sitting next to the Sri City SEZ. Its implementing SPV, Chittoor Industrial Node Development Corporation Ltd, was incorporated in October 2018, and master planning is complete.

The active development within the node is the Kosalanagaram Industrial Park — 2,300 acres in Phase I, up to ~10,000 acres ultimately — conceived as a "Work, Live and Learn" township for automobiles, auto components, engineering and MSMEs. MoEFCC granted its Terms of Reference in November 2019, and APIIC has begun selecting private developers, starting with an initial 500-acre phase.

No VCIC-node-specific tenant or allottee has been confirmed: the named entities in the district are either operators of existing APIIC estates (the APEMCL CETP at Gajulamandyam), bank-default cases (Lakshmi Oil Industries) or summit MoUs (Genius Filters, ₹120 cr). The district’s real strength is its existing base — 177 major projects and 9,271 MSMEs — which the node aims to scale.

Sectors
Automobile & auto components, heavy & light engineering, electronics, textiles, food processing, logistics
Anchor
Kosalanagaram Industrial Park (2,300-ac Phase I); Sri City SEZ adjacency; Chennai auto-belt spillover
Nearest hub
Chennai (~80–100 km) & Krishnapatnam ports (~100 km); Chennai International Airport (~80 km); NH-16 (Golden Quadrilateral)
Developer / SPV
Chittoor Industrial Node Development Corporation Ltd — a State Government company incorporated October 2018 — is the VCIC node SPV. APIIC implements infrastructure (with APRDC for roads and APTRANSCO for power), and the Tirupati Urban Development Authority (TUDA) is the regional planning authority. For the flagship Kosalanagaram park, APIIC is selecting private developers on a PPP basis rather than allotting land directly.
Status
VCIC auto/engineering node — master-planned, developer selection under way

Companies & commitments

CompanySectorCommitment
Genius FiltersTechnical textiles — filters₹120 cr · 250 jobs at Gandrajupalle — MoU at CII Partnership Summit, Nov 2025 [V]
AP Environmental Management Corporation Ltd (APEMCL)CETP / common effluent treatment6.65 ac at Gajulamandyam IP — land allotted Nov 2023 [V] (infrastructure operator, not a manufacturer)
Lakshmi Oil IndustriesWaste-tyre pyrolysis, rubber productsPlot S-8, Rachaguneri, Srikalahasti — under PNB bank auction (default, asset ~₹1.8 cr), Dec 2025 [V]
Kamadhenu Stika (Chittoor textile MoU)Textiles~₹90 cr — part of the statewide CII Summit textile MoUs naming Chittoor among five districts; location within Chittoor inferred [V/D]
Kosalanagaram Industrial Park (developer RFP)Auto & auto components, engineering, MSME (Work-Live-Learn township)2,300-ac Phase I (~10,000 ac ultimate) — MoEFCC ToR granted Nov 2019; private-developer selection initiated May 2026; no tenant yet [V]

Industries coming up

Automobile & auto componentsHeavy & light engineeringElectronicsTextiles & apparelFood processingLogistics & warehousingMSME ancillary

Infrastructure & connectivity

Incentives & land: No node-specific fiscal framework was found; VCIC support here is infrastructure (roads, drains, power, CETP) under the ADB programme. Units fall under general Andhra Pradesh industrial policy — stamp-duty reimbursement, capital and power subsidies and export incentives are referenced by the District Industries Centre, though specific percentages are not published. The Kosalanagaram PPP model implies developer-led land rather than direct government concession.

Status & the Kosalanagaram park

The node’s progress runs through Kosalanagaram. Its ToR (MoEFCC, Nov 2019) fixes the focus sectors as automobile and auto components, heavy and light engineering, and MSMEs, with APIIC adding electronics, FMCG, food processing, logistics and leather as wider targets. The development model is PPP: APIIC is selecting private developers for the park’s construction, operation and maintenance rather than allotting plots itself, which means tenant names follow developer appointment.

The Naidupeta cluster holds the funded civil works — internal roads and drains, a 1 MLD CETP, and a ₹337.8 cr power-distribution upgrade — while the Srikalahasti–Yerpedu cluster carries the master-planned acreage.

Strategic position & the existing base

Chittoor district already hosts 177 major and mega projects (₹24,000 cr, 84,000 jobs) and 9,271 MSMEs (₹7,000 cr, 1.17 lakh jobs), with strengths in food processing (₹5,456 cr invested) and rankings of first in the state for mango, milk and tomato. Its adjacency to Sri City — home to Isuzu, Kellogg’s, PepsiCo, Colgate-Palmolive and Alstom — and reported relocation interest from Chennai’s Ambattur belt make the auto and electronics case credible.

Andhra Pradesh is the only state with three NICDP corridors (VCIC, CBIC, HBIC), and Chittoor district sits at the VCIC/CBIC confluence, reinforcing its logistics and market-access advantage.

Risks & open questions

VCIC development at Chittoor was described as "sluggish" as far back as 2016, and many 2019–2020 infrastructure deadlines have no documented completion. The Kosalanagaram developer-selection process began only in 2026, and ~32 acres at the Gajulamandyam estate are tied up in an Indian Bank vs APIIC dispute pending before the AP High Court.

No anchor investor has been publicly secured for the VCIC node itself; the land price per acre, specific incentive percentages, the water source for Kosalanagaram, and the validity of the 2019 ToR are all unconfirmed. The node competes directly with Tamil Nadu’s established industrial base for the same manufacturers.

Timeline

Sources

← Visakhapatnam nodeAll VCIC nodesMachilipatnam node →