Speed Is Andhra Pradesh’s Investment Edge, IT Minister Lokesh Says

The speed at which Andhra Pradesh executes projects is what differentiates it from other Indian states competing for large investments, Nara Lokesh, the state’s Minister for IT, Electronics and Communications, said at the Pune Public Policy Festival on Friday, 9 Janaury.

Lokesh said competition among states to improve business conditions ultimately benefits the country, summing it up with the line, “When states compete, India wins.”

He pointed to Google’s October announcement of a $15 billion investment to build an artificial intelligence and data center hub in Visakhapatnam as evidence that execution speed and regulatory clarity are becoming decisive factors for global investors.

Lokesh said leadership under Chief Minister N. Chandrababu Naidu and coordination across ministers and the bureaucracy helped secure commitments from companies, including Google, ArcelorMittal, TCS and Cognizant.

Once an investor commits to Andhra Pradesh, Lokesh said, projects are treated as a shared responsibility between the political leadership and the administrative machinery.

He also said continued backing from the central government has reinforced investor confidence, describing the state as operating under a “double engine” governance model. Lokesh said regulatory and tax clarity played a central role in Google’s decision.

He said the state chief minister engaged Finance Minister Nirmala Sitharaman to make the case for locating large-scale data center infrastructure in India, contributing to broader policy alignment at the national level.

On ArcelorMittal Nippon Steel India’s proposed ₹1.5 trillion greenfield steel plant in Anakapalli, Lokesh said statutory clearances are expected by next month, with a foundation stone planned for March.

He said the project proceeded without a formal memorandum of understanding to avoid delays, with land allocation and incentive agreements completed within about 15 to 16 months.

Lokesh said the state tracks major investments through a regimented monitoring system, including dedicated WhatsApp groups used to flag issues and track timelines, with updates shared directly with company leadership.

He also cited Andhra Pradesh’s efforts to build a quantum computing ecosystem, including the planned deployment of an IBM quantum system at the Amaravati Quantum Valley in partnership with TCS and IIT Madras, supported by state incentives such as subsidized power and land.

Energy availability is another differentiator, Lokesh said. Andhra Pradesh is positioning itself as a supplier of round-the-clock renewable power through a mix of solar, wind and pumped storage projects. A two-gigawatt pumped storage facility is already operational, with additional capacity planned over the next five to seven years.

Lokesh was speaking during a fireside chat with Siddharth Desai, Joint Managing Director of Kirloskar Pumps, on the first day of the two-day policy event in Pune.