Andhra Pradesh Approves ₹1,250 Crore NAN MagneTech Rare Earth Magnet Plant in Nellore

The Andhra Pradesh government has approved a customised incentive package for NAN MagneTech to establish a greenfield manufacturing facility for high-performance rare earth permanent magnets at the Naidupeta Industrial Park in Nellore district. The project, involving an investment of ₹1,250 crore, is expected to strengthen India’s strategic manufacturing capabilities while creating around 400 direct employment opportunities.

The proposed facility will be developed across 25 acres and will have an annual production capacity of 1.2 kilo tonnes of high-performance rare earth permanent magnets. These advanced materials play a vital role in electric vehicles, renewable energy systems, electronics, aerospace, defence and several high-technology industries, making the investment strategically important for India’s industrial growth.

According to the approved project schedule, construction is expected to begin in November 2026, followed by machinery installation in January 2027. Trial production is targeted for April 2028, while commercial operations are planned to commence by June 2028.

The proposal received clearance following recommendations from the State Investment Promotion Committee and the State Investment Promotion Board. The Andhra Pradesh government stated that the investment aligns with the national objective of developing indigenous manufacturing capacity for critical minerals while positioning the state as a leading rare earth processing hub serving both the ASEAN and Indo-Pacific markets.

To support the project, the state has sanctioned a customised incentive package under the Andhra Pradesh Industrial Development Policy 4.0 for 2024–29. The incentives include concessional land allotment, capital subsidy of up to ₹564.92 crore, reimbursement of power tariff and electricity duty for six years, subsidy on water charges for seven years and reimbursement of stamp duty, registration fee and transfer duty on industrial land purchases.

The Andhra Pradesh Industrial Infrastructure Corporation and the Directorate of Industries will facilitate approvals through the Single Desk Portal while coordinating with various government departments to ensure timely project execution.

Industry observers believe the investment will enhance India’s self-reliance in critical mineral processing, reduce import dependence for rare earth magnets and support the country’s growing demand for advanced manufacturing technologies. The project is also expected to strengthen Andhra Pradesh’s position as an emerging destination for high-value industrial investments and advanced materials manufacturing.