Palwancha, (also spelled as Paloncha), is a city and a municipality in Khammam district in the Indian state of Andhra Pradesh. It is an industrial town 290 km east of Hyderabad. The Kothagudem Thermal Power station (KTPS), Nava Bharat Ferro Alloys (NBFA), Sponge Iron India Limited (SIIL) are the industries here. There is also a heavy water plant located nearby.