The Andhra Pradesh Cabinet, chaired by Chief Minister N. Chandrababu Naidu on Thursday, approved a wide-ranging set of policy, industrial, and infrastructure decisions aimed at accelerating economic growth, improving logistics, and boosting investments across key sectors.
A major highlight was the approval for setting up the AP Logistics Infrastructure Corporation (APLINC) as an integrated holding company to develop logistics-related infrastructure projects. The Cabinet also cleared the constitution of an AP Logistics Fund as an Alternative Investment Fund (AIF) to mobilise institutional capital, with the State government acting as the initial sponsor with up to a 20% stake.
In the ports and logistics segment, the Cabinet approved the change of name of ArcelorMittal Nippon Steel India Pvt. Ltd. to AMNS Ports Rajayyapeta Pvt. Ltd., designating it as a Special Purpose Vehicle for developing a 2.90-km-long waterfront captive port at D.L. Puram in Anakapalli district.
Several industrial investments received clearance, including the allotment of nearly 150 acres to Ethereal Exploration Guild Pvt. Ltd. in the upcoming Space City at Tirupati for a rocket launch vehicle and engine manufacturing unit. Another 56 acres were allotted to Pioneer Clean Amps Pvt. Ltd. in Chittoor district for manufacturing Hansa-3 (NG) trainer aircraft and setting up a flight training school. The Cabinet also approved a greenfield electrical steel and wind mast manufacturing facility by Shirdi Sai Electricals in Kadapa district.
In addition, special incentives were sanctioned for Ramco Cements Ltd.’s ₹1,500 crore expansion project in Nandyal district, along with incentives for renewable energy projects by Websol Renewable Pvt. Ltd. and Tata Power Renewable Energy Ltd. in Tirupati and Nellore districts.
The Cabinet approved the AP Cluster Development Programme with an outlay of ₹200 crore for establishing 45 MSME Common Facility Centres. It also made the charging of a 5% premium on the Value of Estimated Resources mandatory for non-captive commercial mineral leases granted on a nomination basis.
On the revenue front, the Cabinet allowed the withdrawal of additional retail excise tax on bars to align prices with retail shops. This includes a ₹10 increase in the MRP of IMFL bottles (excluding ₹99 MRP IMFL, beer, wine and RTDs), expected to generate ₹1,391 crore annually and improve retailer margins by about 1%.
Financial approvals included a government guarantee for a ₹5,000 crore loan from NaBFID to the AP Jal Jeevan Water Supply Corporation, administrative approval of ₹945 crore for procurement of student kits for 39.52 lakh students from Classes I to X for 2024–25, and the transfer of a 15-acre plot in Visakhapatnam to the AP Tourism Authority for hill resort development.
The Cabinet also authorised AP-CRDA to make consultancy payments to Foster + Partners, approved ₹166 crore for constructing the AP Judicial Academy in Amaravati, and cleared a proposal to absorb true-up electricity charges by repaying DISCOMs in six monthly instalments to avoid a tariff hike.
Further, the Cabinet approved the DPR and accorded administrative sanction for a 950 MW pumped storage hydroelectric project at Kamalapadu in Anantapur district, with an estimated investment of ₹7,377 crore.
