AP Cabinet Nod for Logistics Corporation, Rs.200-Cr MSME Boost

Vijayawada: The Andhra Pradesh Cabinet on Thursday took a slew of important decisions aimed at accelerating economic growth, boosting employment and strengthening social infrastructure in the state.

In a decisive push to transform AP into a leading industrial and logistics powerhouse, the cabinet approved the creation of the Andhra Pradesh Logistics Infrastructure Corporation (APLINC) along with a dedicated Logistics Fund.

The Cabinet chaired by Chief Minister N. Chandrababu Naidu cleared the construction of the AP Judicial Academy at Amaravati at a cost of Rs.165.33 crore and extended government guarantee for a Rs.5,000 crore loan from NaBFID under the Jal Jeevan Mission to provide tap water to rural households.

Briefing the media, information minister Kolusu Parthasarathy said the decisions were aimed at building robust institutional mechanisms for industrial growth, attracting large investments and generating employment on a massive scale.

APLINC would operate as an integrated holding company to plan, develop and manage logistics infrastructure across the state. Complementing this, the AP Logistics Fund would be structured as an Alternative Investment Fund (AIF) to mobilise capital for sectoral projects. The state government would act as the initial sponsor, contributing 10–20 per cent of the capital, while professional asset management and trustee firms would oversee governance.

In a significant decision related to the port sector, the cabinet approved the renaming of the captive port at DL Puram in Anakapalli district as M/s AMNS Ports Rajayyapeta Pvt Ltd, an SPV of ArcelorMittal Nippon Steel.

To revitalise the MSME ecosystem, the cabinet cleared the AP Cluster Development Programme (AP-CDP) with an outlay of `200 crore. The scheme envisages setting up 45 Common Facility Centres (CFCs) in MSME parks over the next five years, generating direct employment for about 7,500 people.

Aligned with the One Family–One Entrepreneur vision, priority will be given to rural areas and enterprises led by women and SC/ST entrepreneurs.

The Cabinet also endorsed major land allotments recommended by the state investment promotion board. These include 149 acres in Tirupati district for M/s Ethereal Exploration Guild to develop end-to-end launch vehicles under the proposed Space City initiative, and 55 acres in Chittoor district for M/s Pioneer Clean Amps to establish a flight training school and MRO facility for Hansa-3 aircraft.

Large green energy projects by Tata Power (10 GW ingot/wafer plant) and Websol Renewable (4 GW solar cells) in Nellore and Tirupati districts were also approved with incentives.

Providing relief to the hospitality sector, the Cabinet abolished the additional retail excise tax (ARET) on bars to ensure price parity with retail outlets. However, the MRP of IMFL and foreign liquor—excluding the Rs.99 category—will increase marginally by Rs.10 per bottle. This is expected to yield an additional Rs.1,391 crore annually. Microbreweries have been permitted near municipal corporations and in three-star hotels.

On the social sector front, a Rs.1,500 crore loan was sanctioned to the SC cooperative finance corporation to ensure uninterrupted welfare schemes. The proposal for a new government degree college was approved for Kotabommali in Srikakulam district to cater to the educational needs of coastal backward areas.

The Cabinet also approved amendments to the AP Public Libraries Act, 1960, removing discriminatory provisions against persons affected by leprosy in line with directives of the Supreme Court.

Power concessions for the ferro alloys industry were extended for another year, while administrative approval was accorded for the Rs.7,376 crore Kamalapadu Pumped Storage Hydro Project (950mw).