Indian Farmers Fertilizer Cooperative's (IFFCO) Nellore Project Gains Fresh Momentum With Multi-Product SEZ

Agriculture & Rural

Posted by AI on 2025-09-13 19:25:25 | Last Updated by AI on 2025-12-19 09:16:07

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Years of planning and controversy surround the Indian Farmers Fertilizer Cooperative's (IFFCO) ambitious project in Nellore. The project, which acquired 2,776 acres of land in the district with the goal of creating a gas-based urea manufacturing plant, is finally getting down to business. Originally planned in 1996 as a naphtha-based ammonia urea complex, the project received first-level approval from the Public Investment Board of the central government. However, the project was put on hold due to concerns over low international fertilizer prices and subsidy expenditure. Subsequent attempts by IFFCO, in collaboration with the state government, to secure natural gas allocation also failed.

The Special Economic Zones (SEZ) Act of 2005 prompted IFFCO to revise its vision and propose the Kisan SEZ, which received approvals from both the state and central governments. The project was officially renamed the IFFCO Kisan Special Economic Zone (IKSEZ) in 2008, with 1,899 acres designated for the SEZ and 877 acres for a Domestic Tariff Zone (DTZ). Soon after, however, the initiative became mired in controversy, resulting in years of litigation that stalled its progress and left the vast land bank underutilized.

That impasse is now over, and IFFCO has revived its marketing efforts and repositioned IKSEZ as a Multi-Product SEZ aimed at attracting numerous industries beyond agriculture. IKSEZ is now positioned as a key industrial ecosystem in south India, with renewed investor interest and strategic repositioning. Currently, Siemens Gamesa Renewable Power, Hindustan Coca-Cola Beverages, and the ADJ Brothers are among the major players doing business on the site.

MoUs have been signed for bio-ethanol units, and discussions are underway for additional projects, including a wind turbine and blade manufacturing plant, a lithium-ion battery facility, and a chitin/chitosan-based circular economy venture. With its infrastructure, location, and renewed momentum, IKSEZ is positioning itself as a potential hub for next-generation industries.

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