The Andhra Pradesh government has greenlit renewable energy projects totaling ₹158.00 billion at the 14th State Investment Promotion Board meeting, marking a significant boost to the state's clean energy sector. These renewable energy approvals formed part of the larger ₹193.91 billion in total investments cleared during the meeting.

Major Investment Approvals

The standout approval was Tata Power's substantial investment plan worth ₹66.75 billion to develop a 10 GW ingot and wafer manufacturing plant in Nellore, Andhra Pradesh. This facility represents a major step toward strengthening India's solar manufacturing capabilities and reducing import dependence.

Regulatory Developments

The Bihar Electricity Regulatory Commission (BERC) has notified the BERC (Deviation Settlement Mechanism and Related Matters) Regulations, 2025. This regulatory framework follows a suo motu proceeding initiated to align intra-state deviation settlement provisions with the national electricity policy, tariff policy, and the latest Central Electricity Regulatory Commission regulations.

Simultaneously, the Himachal Pradesh Electricity Regulatory Commission has established a levelized tariff of ₹3.40 per kWh for solar projects with capacity over 3 MW and up to 5 MW in urban and industrial areas for financial year 2027. The Commission has also set tariffs for solar projects between 1 MW and 3 MW under the Renewable Energy Sources and Terms and Conditions for Tariff Determination Regulations, 2017. Stakeholders have until February 10, 2026, to submit comments or objections.

Major Tender Activities

Several significant tenders have been floated across the renewable energy sector:

Solar Energy Corporation of India has invited bids for a balance of system package for a 700 MW solar project at Raghanesda in Gujarat's Banaskantha district. The comprehensive scope includes turnkey execution covering design, engineering, procurement, civil works, and five years of operations and maintenance. Bids must be submitted by January 29, 2026.

NTPC Green Energy is seeking contractors for engineering, procurement, and construction packages for up to 100 MW of agricultural photovoltaic projects across Bihar, Odisha, West Bengal, and Madhya Pradesh. The minimum capacity requirement is 10 MW per location, with bid submissions due by January 22, 2026.

Corporate Developments and Partnerships

In the corporate sector, Asahi India Glass will procure 20.80 MW of wind-solar hybrid power from Adani Green Energy Twenty Five B in captive mode. The power will be supplied from a 25 MW solar and 20.80 MW wind power project located in Khavda, Gujarat. Asahi India will subscribe to at least 26% of the generator's proportionate equity share capital.

Hartek Power has secured an engineering, procurement, and construction contract valued at approximately ₹3.53 billion for a 280 MW solar project with an 80 MW/320 MWh battery energy storage system in Karnataka's Chitradurga district. The project scope includes one year of operations and maintenance services.

Technology and Innovation

LEAPTING has signed an agreement with Waaree Renewables to deploy over 2,000 water-free, fully automatic solar module cleaning robots across three solar projects in Rajasthan totaling 1.20 GW capacity. The deployment will utilize LEAPTING's G1 automatic solar module cleaning robots on two-in-portrait fixed-tilt mounting structures.

These developments collectively demonstrate the accelerating momentum in India's renewable energy sector, with substantial investments in manufacturing capabilities, regulatory framework improvements, and technological innovations driving the clean energy transition forward.

Source: https://www.mercomindia.com/daily-news-wrap-up-andhra-pradesh-approves-₹158-billion-in-clean-energy-projects

Andhra Pradesh has emerged as India's premier investment destination, capturing 25.3% of all proposed investments in the first nine months of FY26, according to a comprehensive Bank of Baroda report. This remarkable achievement positions the state ahead of traditional investment leaders and signals a significant shift in India's industrial landscape.

Investment Leadership Across States

The state has successfully overtaken established investment hubs, with the following distribution of proposed investments:

Together, these top five states account for approximately 68% of total proposed investments. Other significant contributors include Tamil Nadu (4.9%), Rajasthan (4.3%), Chhattisgarh (3.9%), Madhya Pradesh (3.2%), and Uttar Pradesh (2.7%). The concentration of over half (51.2%) of India's total proposed capital investment in just three states—Andhra Pradesh, Odisha, and Maharashtra—highlights the emergence of eastern and southern corridors as preferred industrial destinations.

National Investment Momentum

Nationwide investment announcements reached ₹26.60 lakh crore during the first nine months of FY26, representing an 11.5% year-on-year increase. The Bank of Baroda report attributes this positive momentum to the government's comprehensive policy package focusing on capital expenditure, reduced income tax rates, and GST 2.0 implementation. These measures have effectively countered the impact of higher tariffs imposed by the USA on Indian exports, while declining interest rates have further spurred investment activity.

Sectoral Investment Distribution

The power sector dominates investment commitments with a 22.6% share, led primarily by renewable energy projects. The metals sector follows with a significant 17.3% share, which the report identifies as particularly positive for capital formation given metals' role across diverse projects spanning roads, automobiles, and housing. Construction maintains a steady 4% share, encompassing both housing and commercial complexes.

Government Strategy and Policy Framework

Andhra Minister Nara Lokesh emphasized the state's competitive advantage, stating that "Andhra Pradesh isn't catching up, it's pulling ahead." He attributed this success to consistent reforms, rapid decision-making processes, and unwavering commitment to investors. The state government has focused on creating a predictable policy environment, enabling large-scale industry development, and ensuring ground-level delivery.

Key factors driving Andhra Pradesh's investment appeal include:

• Fast-track approval processes for investment proposals
• Sector-focused strategies targeting high-growth industries
• Robust infrastructure development across ports, industrial corridors, and logistics
• Enhanced digital networks and energy infrastructure
• Investor-friendly policies ensuring long-term policy certainty

Strategic Sectors and Future Outlook

The state has successfully attracted investments across multiple high-value sectors including manufacturing, renewable energy, electronics, data centers, mobility solutions, and core infrastructure projects. Industry observers note that Andhra Pradesh's growing investment share reflects a broader realignment of India's growth geography, positioning the state as a preferred destination for companies seeking scale, connectivity, and policy stability.

Minister Lokesh reaffirmed the government's commitment to building long-term partnerships with investors while prioritizing job creation and ensuring swift conversion of investment announcements into operational projects. "Every investment announcement must translate into factories, jobs and economic opportunity for our people," he emphasized, underlining the state's focus on tangible economic outcomes.