The Andhra Pradesh Cabinet, chaired by Chief Minister N. Chandrababu Naidu on Thursday, approved a series of major policy, infrastructure and industrial decisions aimed at strengthening the State’s logistics ecosystem, boosting manufacturing, and accelerating economic growth.
A key decision was the establishment of the AP Logistics Infrastructure Corporation (APLINC) as an integrated holding company to develop logistics and allied infrastructure projects across the State. The Cabinet also approved the creation of an AP Logistics Fund as an Alternative Investment Fund (AIF) to mobilise institutional capital for these projects, with the State government acting as the initial sponsor holding up to a 20% stake.
In the ports and maritime sector, the Cabinet cleared the proposal to rename ArcelorMittal Nippon Steel India Pvt. Ltd. as 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.
The Cabinet also approved significant industrial and aerospace investments. Nearly 150 acres were allotted to Ethereal Exploration Guild Pvt. Ltd. in the upcoming Space City in Tirupati district for setting up a rocket launch vehicle and engine manufacturing facility at a subsidised rate of ₹5 lakh per acre. Additionally, 56 acres were allotted to Pioneer Clean Amps Pvt. Ltd. in Chittoor district for manufacturing Hansa-3 (NG) trainer aircraft and establishing a flight training school.
Further approvals included the establishment of a greenfield electrical steel and wind mast manufacturing facility by Shirdi Sai Electricals in Kadapa district. The Cabinet sanctioned special incentives for Ramco Cements Ltd.’s ₹1,500 crore expansion project in Nandyal district and cleared incentives for renewable energy projects by Websol Renewable Pvt. Ltd. and Tata Power Renewable Energy Ltd. in Tirupati and Nellore districts.
To support MSMEs, the Cabinet approved the AP Cluster Development Programme with an outlay of ₹200 crore for setting up 45 Common Facility Centres. It also made the charging of a 5% premium on the Value of Estimated Resources mandatory for non-captive commercial 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 MRP on IMFL bottles (excluding ₹99 MRP IMFL, beer, wine and RTD), expected to generate ₹1,391 crore annually and increase retailer margins by around 1%.
The Cabinet consented to providing a government guarantee for a ₹5,000 crore loan from NaBFID to the AP Jal Jeevan Water Supply Corporation. It also accorded administrative approval of ₹945 crore for procuring student kits for 39.52 lakh students (Classes I to X) for the 2024–25 academic year.
Other key decisions included permission to transfer a 15-acre plot in Visakhapatnam to the AP Tourism Authority for hill resort development, authorising AP-CRDA to make consultancy payments to Foster+Partners, and approving ₹166 crore for the construction of the AP Judicial Academy in Amaravati.
To shield consumers from a tariff hike, the Cabinet decided to bear the burden of electricity true-up charges by repaying DISCOMs in six monthly instalments. It also approved the DPR and granted administrative sanction for a 950 MW pumped storage hydroelectric project at Kamalapadu in Anantapur district, estimated to cost ₹7,377 crore.
The decisions reflect the State government’s focus on infrastructure-led growth, industrial diversification, and public welfare while maintaining fiscal stability.
