Cabinet Nod for Investments of Rs 80,000 Crore

Vijayawada: The weekly meeting of the AP Cabinet on Thursday approved investments of approximately Rs 80,000 crore in the state through new business ventures, which are projected to create job opportunities for 1.50 lakh people.

The Cabinet meeting, chaired by Chief Minister N. Chandrababu Naidu, took several important decisions.

Briefing the media, information minister Kolusu Parthasarathi said the cabinet has approved a proposal made by IT E&C department for approval of Andhra Pradesh Electronics Components Manufacturing Policy 4.0 (2025-30). Such companies investing in AP would receive advance incentives, matching incentives, interim support measures,and plug-and-play manufacturing facilities in special clusters.

Significant employment generation opportunities would arise in areas like Sri City near Tirupati, Orvakal near Kurnool, Kopparthi, and Hindupur, the minister said.

The Cabinet approved a proposal for making the Green Hydrogen Valley Declaration in Amaravati.

It approved a proposal to invite tenders for works related to 40 per cent expenditure for the first phase works of Metro Rail project, which is to be undertaken on a 50-50 joint venture basis with an estimated cost of Rs 11,498 crore in Visakhapatnam city.

Nod was also given to a proposal from the urban development department for in-principle approval of the Vijayawada Metro Rail Project Phase-I with two corridors. This is estimated to cost Rs 10,118 crore. A 50:50 government joint venture (JV) equity funding model is proposed. It was decided to start the tendering process for up to 40 per cent of the project costs and issue the Notice to Proceed (NTP) subject to approval from the ministry of housing and urban affairs.

Stampede report: The cabinet approved the report submitted by retired judge M. Satyanarayana Murthy, as commissioner of inquiry on the stampede at Padmavathi Park in Bairagipatteda, Tirupati, on January 8, 2025.

Water tax arrears: The council of ministers approved a proposal for waiver of outstanding interest amount of Rs 85.81 crore on the water tax arrears of 2024-25 as a one-time measure, while collecting the tax arrears from farmers.

Tobacco procurement: The cabinet approved a proposal to revise the operational guidelines for HDBRG tobacco procurement, farmer scheduling, quantity limits, centre expansion and logistics support by fixing 20 quintals as the limit per farmer.

Land allotments: The cabinet allocated 0.45 acres of land to M/s. Phenom People Pvt Ltd in the IT Park at Madhurawada, Rushikonda Non-SEZ zone, Visakhapatnam district, and providing incentives under AP IT & GCC Policy (4.0) 2024-29 for a project with a Rs 207.5 crore investment, promising creation of 2500 jobs.

By another decision, it agreed to a proposal made by IT E&C department to allocate 3.6 acres of land at IT Hill No.3, Madhurawada, Visakhapatnam district at Rs .1 crore per acre, and 50 acres at Paradesipalem at Rs 50 lakh per acre, to M/s Sify Infinite Spaces Ltd through APIIC. This would mean an investment of Rs 16,466 crore and likely employment to 600 persons.

This strategic move would help establish Visakhapatnam as a key data hub, attract technology-based organisations and improve the state’s capabilities in cloud computing, data storage, and digital services.

The Cabinet approved allocation of 30 acres of land at Plots UDL1, UDL2 and UDL3 at IT Hill 4, Madhurawada, Visakhapatnam Rural mandal, through APIIC at a subsidized rate of Rs 1.50 crore per acre to Messrs Sattva Developers and provide incentives under AP IT & GCC Policy (4.0) 2024-25 for a proposed investment of Rs 1,500 crore as recommended by SIPB. This too would have a job potential of 25,000, the information minister said.