AP allots 1,000 acres in Sri Sathya Sai dist to HFCL's Rs.1,040-crore artillery, hand grenade manufacturing unit

Andhra Pradesh Government has approved the proposal of HFCL Limited for allotment of 1,000 acre in Madakasira mandal in Sri Sathya Sai district for its project for manufacturing artillery ammunition shell and TNT filling, multi-mode hand grenade (MMHG).

Orders have been issued annulling the earlier allotment with the condition that allotment is being made to the de-facto parent company of HFCL Limited due to operational issues. Another reason is to complete the implementation of the project with an investment of Rs.1,040 crore and a commitment to provide jobs to 870 people by October, 2029.

The land allotment to HFCL Limited has been made with the conditions that for the first phase allotment of 329 acres, the project proponent has to pay Rs.7 lakh per acre. For the second phase allotment of 671 acres under the APIIC’s “Land Acquisition for Others” Policy, it will be given to HFCL Limited on actual cost basis.

Instructions have been given to the Director of Industries, AP and the VC&MD, APIIC and District Collector, Sri Sathya Sai, to take

necessary action accordingly.

Earlier, the government had allotted the same land viz. allotment of 329 acre for phase-I of the project to Media Matrix Worldwide Limited (MMWL) for establishment of artillery ammunition shell and TNT filling, multimode hand grenade (MMHG) manufacturing unit at Rs.7 lakh per/acre, on par with the similar unit in the neighbourhood area.The government had also permitted the Vice Chairman and Managing Director, APIIC to proceed with the land acquisition and allotment of 671 acre land for phase-II of the project under LA for Others policy of APIIC, for onward allotment of lands to the firm, on actual cost basis.

According to the government, later MMWL informed that it is facing legal challenges to obtain PESO licenses, export clearance, TOT issues etc. In lieu of this, it expressed its 'no objection' to the cancellation of the existing allotment and provided its consent for the transfer of the said allotment to HFCL Limited. Further, HFCL Limited submitted a proposal to undertake the proposed project in place of MMWL, citing its technical and

legal readiness to execute the same.

"Given that MMWL is an associated entity and is encountering operational hurdles, HFCL Limited affirmed its capability to proceed with the project

under its own name, ensuring compliance with all requisite statutory and regulatory provisions. Accordingly, the requests of the HFCL Limited

was placed before the State Investment Promotion Board (SIPB) meeting held on 28.08.2025 with the recommendations of the State Investment Promotion Committee (SIPC)," Secretary, Industries and Commerce Department N. Yuvaraj, stated in GO Ms. No. 154 issued recently.