AP Cabinet Blitz: Rs.9 Lakh Crore Investments Approved

Vijayawada: In a marathon session on Tuesday, the Andhra Pradesh Cabinet cleared a wave of transformative decisions, headlined by a staggering Rs.9.05 lakh crore investment pipeline and a major welfare push.

The meeting, presided over by Chief Minister N. Chandrababu Naidu, approved the establishment of a dedicated Department of Science, Technology & Innovation that would be headed by a domain expert.

From pioneering semiconductor plants to landmark infrastructure projects in Amaravati, the cabinet signalled the state’s aggressive shift from ‘Ease of Doing Business’ to ‘Speed of Doing Business.’

In a historic first for the state, the cabinet approved a Rs.2,387-crore outsourced semiconductor assembly and test (OSAT) facility by the Advanced System in Package Technologies, at Tarluvada in Visakhapatnam. This project, sanctioned under the India Semiconductor Mission, is expected to generate 1,000 direct jobs.

Further cementing Vizag’s status as a tech hub, the Adani Group received the green light for a 1000mw AI-Data Center. The cabinet allotted 601.4 acres across Visakhapatnam and Anakapalli for three Adani SPVs, ensuring a rapid rollout of the project.

The Amaravati Capital City project received a shot in the arm with administrative sanctions totalling Rs.980 crore for the mechanical, electrical and plumbing works. This includes Rs.424.34 crore for the legislative assembly and Rs.556 crore for the high court building.

The cabinet also approved the AP Motor Vehicles Taxation (Amendment) Bill, 2026, introducing a 10 per cent ‘road safety cess on life tax’ during vehicle registration to fund safety initiatives.

In a significant humanitarian gesture, the cabinet extended the ‘Stree Shakti’ free travel scheme to Persons with Disabilities (PWDs) with 40 per cent or more disability. Eligible PWDs and their escorts can now travel for free in Palle Velugu and City Ordinary buses, with the government reimbursing APSRTC for the subsidy.

The departments of education and administration also saw a massive overhaul.

Commissionerate of higher education : In a significant move, the department of technical education was abolished, merging collegiate and technical wings into a unified Commissionerate of Higher Education. To bridge the skill gap, a new Commissionerate of Skill Development, Employment & Training was formed, creating a "one-stop shop" for employers.

The cabinet’s green agenda took center stage with the approval of a 16 GWhr Lithium-Ion Giga Factory by Waaree Energy in Anakapalli at an estimated cost of `8,175 crore, and several wind-solar hybrid projects across Kurnool and Anantapur.

MSME Revival: To boost grassroots entrepreneurship, the MSME Revival Policy (4.0) 2026-31 was launched with the vision “One Family – One Entrepreneur.” The policy offers capital incentives and soft loans to strengthen the small-scale sector.

The other highlights of the cabinet meeting are: Jal Jeevan Mission: Approval of a Rs.8,650 crore NABARD loan guarantee for rural water supply. Neeru-Chettu: Withdrawal of criminal cases against officials and agencies involved in 2014-19 works.

Approval was granted to create three posts—1 professor, 1 associate professor, and 1 assistant professor—on a regular basis for the Neonatology unit at RMC, Kakinada. These posts would be created by regulating 5 tutor posts at RMC, Kakinada.

The Cabinet approved the withdrawal of criminal prosecution and disciplinary actions initiated against forest department officials, water resources development department engineers, and agencies who executed the 2014-19 "Neeru-Chettu" works while serving as members of the Janmabhoomi Maavuru Committee.

This decision will enable withdrawal of the criminal/disciplinary actions recommended and implemented by the Vigilance and Enforcement Department.