Vijayawada: The AP state Cabinet, which met at the Velagapudi Secretariat on Thursday, decided to allot 100 acres at the rate of Rs 50 lakh per acre in Amaravati to BR Shetty Group of Dubai to set up a medical university, a 1,000-bed hospital, medical equipment manufacturing unit, naturopathy centre and staff quarters with an investment of Rs 10,000 crore.
Briefing the media after the Cabinet meeting, I&PR minister Palle Raghunatha Reddy said that the Cabinet also decided to increase salaries of of 14 mayors, 14 deputy mayors, 715 corporators, 96 chairpersons, 96 vice-chairpersons and 2,450 councillors.
The wages of the mayor will be increased from Rs 14,000 to Rs 30,000 and deputy mayor from Rs 8,000 to Rs 20,000. The local bodies have to bear additional expenditure of Rs 6.52 crore with the increase in wages which cost Rs 15.86 crore.
The Cabinet decided to extend surety to get a loan of Rs 1,859 crore from Hudco or other agencies for Amaravati Metro Rail Corporation, to take forward the project. The Metro rail project in Vijayawada costs Rs 7,212 Crore including '829.50 crore equity each from Union and state governments.
The Cabinet also approved the draft Bill to bring amendment to AP Infrastructure Development Enabling Act 2001 to attract more investments from private sector.
The Cabinet also decided to allot 200 acres to Apollo Tyres Limited at Chinapanduru of Varadayapalem mandal in Chittoor to set up a modern tyre factory. It also decided to extend guarantee to provide cash credit facility to APCO to purchase clothes at a cost of Rs 52.48 crore and yarn at Rs 5.84 crore from 2016-17 to 2018-19. The Cabinet decided to sanction and upgrade 195 posts in three departments, Mr Reddy said.
