Indonesian maker Asia Pulp and Paper is to invest Rs 24,000 crore ($4.69 billion) in a mill and port facilities in Prakasam, India.
Overseeing the signing of a memorandum of understanding and the unveiling of a pylon last week, chief minister N Chandrababu Naidu described the projects as a game changer.
The agreement between Sinarmas subsidiary APP and Andhra Pradesh Economic Development Board covers a pulp and paper manufacturing unit - capable of producing five million tonnes a year - at Ravuru, creating 4000 direct and 12000 indirect jobs. Farmers will also benefit with the demand for pulpwood such as subabul and eucalyptus.
In the first phase with the government's new Ramayapatnam port, APP is to be allocated two of the eight berths, with hopes the timescale for the project can be brought forward by up to a year.
APP director Suresh Kilam says pulp and paper consumption in India is expected to increase from 18 million to 40 million tonnes in coming years.