Andhra Pradesh Chief Minister Chandrababu Naidu in a cabinet meeting Express Photo
Andhra Pradesh

AP Cabinet clears Rs 31.3K crore AI data centre at Bhimili

Approves major investments in AI, electronics, pharmaceuticals and manufacturing, besides industrial parks & renewable energy projects

S Viswanath

VIJAYAWADA: The Andhra Pradesh Cabinet meeting held under the chairmanship of Chief Minister N Chandrababu Naidu at the Secretariat on Tuesday approved a series of major investment proposals, new industrial policies and administrative reforms, with a focus on attracting technology-based industries, strengthening infrastructure and generating employment across the State.

Among the key decisions was the approval of the Andhra Pradesh Animation, Visual Effects, Gaming, Comics and Extended Reality (AVGC-XR) Policy 2026-31 and the Andhra Pradesh Robotics and Physical AI policies. The Cabinet also gave its nod to amendments to the draft AP Semiconductor and Display Fab Policy 2024-29.

In a major investment decision, the Cabinet approved the establishment of a 512 MW green integrated artificial intelligence (AI) data centre by AM Intelligence at Bheemunipatnam in Visakhapatnam district, involving an investment of Rs 31,387 crore.

It also cleared the proposal of Carbon Cosmo Advanced Materials Private Limited (CCAMPL) for Setting up of Integrated manufacturing complex for iron phosphate (FP/FePO4) precursor and lithium iron phosphate (LFP/LiFePO4) cathode active material in Naidupeta with an investment of Rs 4000.20 crore and potential to create 700 jobs.

Besides clearing the land allotment to Dixon Technologies in Tirupati for a project worth Rs 700 crore, the Cabinet gave nod for allotment of around 25 acres at Bhogapuram in Vizianagaram district for Reliance Industries’ giga-scale AI data centre.

An Epack AI data centre equipment manufacturing unit will come up at Rambilli in Anakapalli district with an investment of Rs 570.20 crore, creating an estimated 2,565 jobs. The Cabinet also approved the allotment of 173.82 acres to Hetero Group pharmaceutical companies at the Nakkapalli Bulk Drug Park.

The Ravali Spinners expansion project in West Godavari district, involving Rs 236.92 crore, is expected to provide employment to 1,569 people.

To encourage women entrepreneurs, the Cabinet approved a 30-acre FICCI FLO Industrial Park at Jaggayyapeta in NTR district. It also cleared an integrated footwear park by SKICORP on 56.82 acres in Annamayya district and an MSME park on around 21 acres at Thamballapalle.

On the administrative front, the Cabinet approved the establishment of a Directorate of Traffic Management and Road Safety (DTMRS), headquartered at Mangalagiri under the DGP, to improve traffic regulation and road safety.

Other decisions included leasing five acres to Kendriya Vidyalaya Sangathan at Shakamuru in the capital region with stamp duty exemption, and allotting two acres for a government ITI college at Penukonda in Sri Sathya Sai district.

The Cabinet also approved the creation of the posts of ‘Pradhana Sannidhi Yadava’ and ‘Sannidhi Yadava’ at the Tirumala temple, besides ‘Chief Sthapathi’ posts in the Endowments Department at the level of Superintending Engineer.

In the energy sector, it approved new compressed biogas plants in NTR, Prakasam and Vizianagaram districts and a feasibility study on nuclear power plants using Small Modular Reactor (SMR) technology as an alternative to thermal power generation.

The VMC will receive 5.50 acres of APGENCO land free of cost to establish a 15 MW waste-to-energy plant.

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