The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) received environmental clearance from the Union ministry of environment and forests (MoEF) for a multi-product special economic zone (SEZ) at Naidupeta in Nellore district. Spread over 2550.79 acres the SEZ has been developed at a cost of Rs 114 crore. It will cover Dwarakapuram, Pallepalem, Menakur, Konetirajupalem and Palluchuru villages of Naidupeta and Pellakuru mandals. Around 1,200 acres would be available for new industries and the remaining area would be used for common infrastructure facilities.

MoEF stipulated that there shall be no manufacture of automobile parts, but the SEZ can be used for assembly of automobiles. The SEZ will have an employment potential of 40,000 jobs. Three to four companies such as Aurobindo, PEL (Prime Electric Limited) and Green Tech have already established their facilities by taking independent approvals from MoEF.