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Andhra Pradesh Govt Clears Land for 2,000 MW Solar Parks in Kadapa, Kurnool Under Lease Model

The Government of Andhra Pradesh has approved land allocation for two 1,000 MW solar parks in Kadapa and Kurnool, to be developed under a 33-year land-lease model through the Andhra Pradesh Solar Power Corporation.

April 06, 2026. By Mrinmoy Dey

The Government of Andhra Pradesh has recently cleared the allocation of land in Kadapa and Kurnool districts for two ultra-mega solar parks of 1,000 MW each. The approvals were formalised during a recent cabinet meeting, where the state authorised the transfer of land to Andhra Pradesh Solar Power Corporation (APSPCL).

APSPCL will subsequently lease the land to private developers under long-term lease agreements. Land parcels identified for the projects include around 466.54 acres in Mylavaram mandal of YSR Kadapa district and approximately 737.66 acres in Orvakal mandal of Kurnool district. Both sites will be offered on a 33-year lease, enabling the development of utility-scale solar infrastructure.

The state is clearly pivoting from outright land transfers to a structured lease-based model. For the Kadapa project, lease rentals are pegged at 10 percent of the 2016 benchmark land value, with a built-in escalation of 10 percent every five years. In Kurnool, lease rent has been fixed at INR 20,000 per acre annually, derived from an indicative valuation of INR 2 lakh per acre, also subject to periodic escalation over the concession period.

This policy recalibration reflects a more measured approach of retaining government ownership of land while unlocking private capital for infrastructure creation. By routing land through APSPCL, the state ensures centralised oversight while streamlining developer access to project-ready sites.

Together, the two parks are expected to add 2,000 MW of solar capacity, strengthening Andhra Pradesh’s renewable portfolio and reducing reliance on conventional energy sources. The initiative is also positioned to catalyse investment inflows, create employment across project lifecycles, and stimulate allied sectors such as equipment manufacturing, logistics, and maintenance services.

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Solar PV

Solar parks in Andhra Pradesh

Andhra Pradesh Solar Power Corporation

Land allocation for solar projects

Land leasing model for solar in AP

Solar parks in Kadapa and Kurnool