NELLORE: Every time N. Chandrababu Naidu assumes office as Chief Minister, he introduces a distinct administrative focus and drives it consistently through his tenure.
In his current term, the emphasis has been on the “Speed of Doing Business”, a principle he has repeatedly highlighted to officials, industrialists and investors over the past one and a half years.
The government’s priority has been to ensure faster industrial approvals and quicker implementation of projects on the ground.
Ministers are also vying to attract companies and industrialists from neighbouring states to Andhra Pradesh.
Reflecting this approach at the district level, Nellore District Collector Himanshu Shukla has taken the Chief Minister’s vision forward by persuading a major company that had initially planned to establish its unit in Donakonda of Prakasam district to choose Nellore instead, underscoring the emphasis on speed of doing business.
Premier Explosives Limited (PEL) subsequently decided to shift its proposed project to Nellore after delays reportedly slowed progress at the earlier location.
Boost to AP’s indigenous defence manufacturing
PEL has entered into an agreement with the Andhra Pradesh government to invest in a defence and aerospace manufacturing facility, with the proposal receiving approval from the State Investment Promotion Board (SIPB).
The company had earlier signed a non-binding memorandum of understanding with the Andhra Pradesh Economic Development Board in November 2025 for establishing the project. The investment comes at a time when domestic demand for defence localisation and advanced propulsion systems is witnessing steady growth.
Headquartered in Secunderabad, PEL is a leading manufacturer of high-energy materials and allied products catering to defence, aerospace, mining and infrastructure sectors.
The company currently operates facilities in Telangana, Maharashtra, Madhya Pradesh and Tamil Nadu and the proposed Nellore unit will mark its first major investment in Andhra Pradesh.
Upon learning about the delays faced by the company, Collector Himanshu Shukla engaged directly with its representatives and assured full administrative support. The district administration identified suitable land in Nellore and secured necessary approvals within a week through the Andhra Pradesh Industrial Infrastructure Corporation, enabling the project to move forward swiftly.
According to the district administration, the proposed plant will be developed in three phases. The first phase will focus on manufacturing medium calibre ammunition, pyro devices and HTPB.
The second phase will involve filling bombs, artillery shells and rocket motors, while the third phase will include the establishment of a TNT production plant along with expansion of earlier facilities.
The total project cost is estimated at `500 crore, with `150 crore earmarked for Phase I and `175 crore each for Phases II and III.
Once fully operational, the unit is expected to generate significant employment and require substantial infrastructure support, including water and power supply. The proposed production capacity includes large volumes of medium and large calibre ammunition, pyro devices, HTPB, bombs, artillery shells and propellants for rocket motors and missiles.
The project is expected to strengthen Andhra Pradesh’s position in indigenous defence manufacturing by enabling domestic production of explosives, propellants, ammunition and critical raw materials, thereby reducing dependence on imports.
It will also establish the state’s first private defence explosives and raw materials manufacturing facility, positioning Andhra Pradesh as a potential supplier to organisations such as DRDO and ISRO.
The facility is proposed to come up at Muttarasalli village in Duttalur mandal of Nellore district, which is expected to emerge as a defence and aerospace manufacturing hub following the investment.
Udayagiri MLA Kakarla Suresh credited Minister Nara Lokesh, Industries Minister T.G. Bharat and the district administration for facilitating the project.
He said the PEL’s project would generate employment for local youth while benefiting farmers and boosting the regional economy, and added that efforts are underway to bring another major industry to the Udayagiri Assembly constituency.