Tirupati to get twin 5-star hotels, a dairy plant

Hans India

26-06-2025

Tirupati: The State government is betting big on tourism and industrial development in the Tirupati region, clearing a fresh set of land allotments that aim to bring in private investment, generate employment, and reshape the local economy. At its meeting on Tuesday, the State Cabinet approved two major 5-star hotel proposals and a large-scale dairy unit together with an investment outlay of Rs 343 crore, which are expected to play a distinct role in the district's economic roadmap.
One of the headline decisions involved allotting 12.7 acres of land in SV Puram village of Vadamalapeta mandal to Bengal Ultimate Resorts LLP, an Odisha-based company.
The firm plans to set up a 5-star resorts close to Tirupati, tapping into the steady stream of pilgrims and tourists visiting the temple town.
The land, which falls under survey numbers 428-2 and 428-3, will be handed over free of cost to the Andhra Pradesh Tourism Authority, which will monitor the project and oversee the release of incentives. The lease period is set at 66 years, with a 33-year extension option.
The Rs 150.52 crore investment project is expected to provide direct employment to 350 people.
To make the project viable and attractive to investors, the government has cleared a comprehensive incentive package that includes full reimbursement of net SGST for 10 years or until the total fixed capital investment is recovered. Stamp duty and electricity duty will also be reimbursed for five years. Officials said the Revenue Department has been instructed to complete the land alienation process quickly to avoid project delays.
In another proposal, the Cabinet ratified a decision by the State Investment Promotion Board (SIPB) to support Pavani Hotels, Guntur in setting up another 5-star property in Tirupati. With an investment of Rs 80.46 crore, the project is expected to provide direct employment to 300 people and create around 600 indirect jobs. Similar incentives have been approved for this project as well.
The Cabinet didn't stop at tourism. In a significant move for the dairy sector, it approved the allotment of 22.8 acres at the MPSEZ in Naidupet to Sangam Milk Producer Company Limited. The company plans to invest Rs 112 crore to establish a milk and cultured products manufacturing unit, expected to employ around 400 people. The land will be allotted at a concessional rate of Rs 50 lakh per acre.
It is worth noting that the district's vision document outlines a major push to promote tourism by leveraging its strengths in spiritual tourism. To support this, the district administration has been exploring various strategies to encourage longer visitor stays, allowing tourists to experience the region's diverse attractions more fully.
While the city already offers a range of accommodations, from budget options to 3-star hotels, the current focus is on expanding capacity in the 4-star and 5-star categories, with several projects already in the pipeline.