Kakinada SEZ – Water and Power Projects Set to Support Industrial Growth
Kakinada SEZ – The Kakinada Special Economic Zone is preparing for a major expansion across nearly 8,000 acres, with plans to accommodate a wide range of industries, port-linked facilities and commercial units. The proposed development is expected to place Thondangi and U Kothapalli mandals in Kakinada district among the important industrial growth areas of the state.

Officials and industry representatives say reliable water supply, wastewater management and electricity infrastructure will be essential for the next phase of development. The SEZ is therefore planning common facilities that can support both existing companies and new investors.
Existing Units Have Created Thousands of Jobs
Employment has already increased in the region through seafood processing, pharmaceutical manufacturing and port operations. Five seafood-processing units have generated more than 8,000 jobs, while Lyfeus Pharma has provided employment to over 3,500 people.
DIVIS has created around 4,000 jobs, and Kakinada Gateway Port has employed nearly 1,000 workers. Other industrial units in and around the SEZ have also hired local residents. With five more companies signing memorandums of understanding to establish operations in the zone, employment opportunities are expected to expand further.
Desalination Plant Planned for Industrial Water Supply
A large desalination facility is being planned to meet the water needs of industries operating within the SEZ. The proposed plant will have a capacity of 380 million litres per day and will be located in the central part of the industrial zone.
The project is expected to process seawater and distribute treated water through a pipeline network to factories and other commercial establishments. Industries currently dependent on water tankers may benefit from a more regular supply once the facility becomes operational.
Drinking water for industrial units is also expected to be supplied through Reverse Osmosis systems. The desalination plant will mainly provide treated water for manufacturing processes and other operational requirements.
Pipeline Work Begins for Seawater Intake
Work has reportedly begun on pipelines that will extend into the sea to draw water for the desalination process. Motor pumps will be used to bring seawater to the treatment facility, where it will be purified before being supplied to industries.
The project is intended to reduce pressure on local freshwater resources while helping companies maintain regular operations. It may also make the SEZ more attractive to businesses that require significant volumes of water for production.
Centralised Treatment Facility Under Consideration
Alongside the desalination project, the Kakinada SEZ is considering a centralised Sewage Treatment Plant for industrial wastewater and sewage management. Wastewater generated by companies would be treated through physical, biological and chemical processes before it is reused or safely released in accordance with environmental standards.
Treated water could be used for non-drinking purposes, while the system would help reduce the environmental impact of industrial discharge. Until a central facility is established, some industries are building their own treatment plants.
According to I Suryakala, Environmental Engineer for Kakinada district, a common STP can be commissioned after the number of industries rises beyond ten. The requirement will depend on the quantity of wastewater generated by industrial units.
Land and Funding Identified for Key Projects
Krishna Kumar Vedavalli, Head of Business Development at Kakinada SEZ, said around 50 to 60 acres have been identified at three locations for a common effluent treatment facility. Nearby industries could use this facility if a separate centralised STP is not developed.
He said Rs 1,300 crore has been allocated for the desalination project, which is proposed on 60 acres of land. The SEZ is also developing a 400 KV sub-station on 65 acres to improve power availability for industries.
The sub-station project has an estimated budget of Rs 350 crore and is targeted for completion by March 2027. It is expected to create more than 50 direct jobs while supporting larger industrial activity across the SEZ.