IFFCO’s Nellore Project Gains Fresh Momentum With Multi-Product SEZ

Nellore: Nearly three decades after acquiring 2,776 acres of land in this district for setting up a gas-based urea manufacturing plant, the Indian Farmers Fertiliser Cooperative (IFFCO) is finally getting into action mode.

Originally planned in 1996 as a naphtha-based ammonia–urea complex, the project had received first-level approval from the Public Investment Board of the central government. However, final clearance was withheld due to low international fertilizer prices and a concern over subsidy outflow. Subsequent attempts by IFFCO, along with successive state governments, to secure natural gas allocation had also failed.

With the enactment of the Special Economic Zones (SEZ) Act, 2005, IFFCO reoriented its vision and proposed the Kisan SEZ, securing approvals from both state and central governments. In 2008, the project was officially rebranded as the IFFCO Kisan Special Economic Zone (IKSEZ), with 1,899 acres earmarked for the SEZ and 877 acres for a Domestic Tariff Zone (DTZ).

The ambitious initiative was soon mired in controversy — from disputes over steep land pricing to questions over allotments to non-agriculture companies. Years of litigation stalled its progress, leaving the vast land bank underutilized.

That impasse now appears to be over. Having cleared legal hurdles last year, IFFCO has revived its marketing efforts and repositioned IKSEZ as a Multi-Product SEZ aimed at attracting a broad spectrum of industries beyond agriculture.

“IKSEZ encourages investors from diverse sectors such as renewable energy, electric mobility, electronics, nanotechnology, IT/BPO and light and heavy engineering,” sources in the project confirmed.

“Two MoUs have been signed for bio-ethanol units, while discussions are under way for projects including a wind turbine and blade manufacturing plant, a lithium-ion battery facility, and a chitin/chitosan-based circular economy venture.

In addition, talks are on with nearly 20 potential investors to establish their units,” an official said.

Some major players are already on board, including Siemens Gamesa Renewable Power – with an operational windmill blade and generator manufacturing unit on 150 acres; the Hindustan Coca-Cola Beverages (HCCB) having been allotted 150 acres for a beverage plant, with construction set to begin soon; and the ADJ Brothers – exporters of agri and garden products-- functioning on a 5-acre site.

With renewed investor interest and strategic repositioning, IKSEZ is now being seen as a potential hub for next-generation industries.

From a stalled urea plant to a multi-sector SEZ, IFFCO’s Nellore project is finally shedding its inhibitions.

“With its infrastructure, location and renewed momentum, IKSEZ is positioning itself as a key industrial ecosystem in south India, said Nellore collector O Anand.

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Spread across 2,776 acres (1,125 hectares), IKSEZ enjoys excellent multimodal connectivity:

· Air: Proximity to Chennai (190km), Tirupati (140km), and Vijayawada (250km); with a domestic airport proposed in Nellore

· Sea: Just 50km from Krishnapatnam port and 200km from Chennai port

· Road & Rail: Located along NH-16 (Chennai–Kolkata highway) and near the Chennai–Kolkata railway line

*220 KV substation with 100mw capacity,

*State approval to draw 10mgd of water from the Pennar River system (with twin pipelines laid)

*30km of internal roads

*36,000 sq-ft of office space

*A secure 27km boundary wall

The revised master plan also earmarks 22 per cent of land as green belt, with a focus on water conservation, stormwater drainage and STPs