VIJAYAWADA: The State Cabinet meeting, chaired by Chief Minister N Chandrababu Naidu at the Secretariat on Thursday, approved a sweeping set of proposals across urban development, industries, energy, tourism, infra and welfare sectors.
The decisions together unlock investments of over Rs 25,000 crore across multiple departments, and are expected to generate more than 1.1 lakh direct and indirect jobs.
I&PR Minister Kolusu Parthasarathy briefed the media on the Cabinet decisions.
A major share of approvals came in the urban development and water resources sectors. The Cabinet ratified revised administrative sanction of Rs 9,514.63 crore for 506 projects under the State Water Action Plan, and permitted 281 additional projects to be taken up under the lump sum method.
It cleared the L1 bid for the construction of key buildings in Capital Amaravati, including Lok Bhavan, the Governor’s Residence, Assembly Darbar Hall and guest houses.
In addition, the Cabinet approved a Rs 532.57 crore tender for the expansion of the E3 Road with a six-lane elevated corridor linking the Seed Access Road to NH 16.
Cabinet okays 3.64% DA/DR hike for govt staff
The Cabinet also sanctioned revised funding for the repair and reconstruction of four check-dams on the Palar river in Chittoor district, aimed at improving irrigation across more than 1,300 acres.
The Finance Department’s proposal to implement a 3.64% DA/DR hike for government employees, and pensioners was approved.
The Cabinet also cleared the upgradation of 417 teachers in Tribal Welfare Ashram Schools as school assistants, and ratified the restructuring of the AP State Social Welfare Board.
The draft Andhra Pradesh Prisons and Correctional Services Act, 2025, replacing the outdated colonial era prison laws, was also approved.
The Industries & Commerce Department secured approval for 14 major industrial proposals worth over Rs 15,000 crore, spanning sectors such as solar, pharmaceuticals, chemicals, food processing, biofuel, glass manufacturing and MSME development.
These projects are expected to create more than one lakh direct and indirect jobs. Notable approvals include a multi-product SEZ by IFFCO Kisan, a 6 GW solar ingot wafer unit by ReNew Photovoltaics, and expansion by Malladi Drugs, TGV SRAAC and ZEIT Energy.
The ITE&C Department received approval for 11 high tech projects worth Rs 1,421.2 crore, including seven quantum computing units in the upcoming Amaravati Quantum Valley, a major PCB manufacturing facility by CIPSA TEC in Naidupeta, and three IT campuses in Visakhapatnam.
These projects will generate 3,057 high-skill jobs, and position Andhra Pradesh as a national hub for quantum technologies, electronics and IT services.
Under the Infrastructure & Investments Department, the Cabinet approved the allotment of 153.77 acres near Tettu railway station in Nellore district for a multimodal rail cargo terminal by Ramayapatnam Cargo Terminal Pvt Ltd.
It also cleared 29.58 acres at Juvvaladinne Fishing Harbour for an Autonomous Maritime Shipyard and Systems Centre by Sagar Defence Engineering, with lease terms linked to fair market value.
Tourism received a major boost with the approval of four premium hospitality projects in Visakhapatnam, Bapatla and Tirupati, attracting Rs 784.39 crore investments, and creating over 4,300 jobs. These include Hyatt and Hilton five star hotels, a Radisson beach resort and a Hilton Garden Inn.
The Cabinet also approved a Rs 2.5 crore cash award, a residential plot, and a Group-I job for international cricketer N Sree Charani, who represented India in its historic ICC Women’s World Cup victory.
A long-pending luxury resort project by Oberoi Group in Tirupati was revived with fresh land allotment. Several land-related decisions were approved under the Revenue Department, including leasing 45 acres in Kadapa district for a 27 MW wind project, allotting land in Visakhapatnam for Aamoda Publications, and transferring 36.41 acres in Eluru for MIG housing layouts.
The Energy Department received some of the largest approvals of the day. The Cabinet cleared a 300 MW wind-solar hybrid project in Anantapur district, and a 1700 MW AC/ 2125 MWp DC solar project with energy storage in Sri Sathya Sai district.
A 10 TPD compressed biogas plant in Kuppam was also cleared. In a major welfare initiative, the government sanctioned an additional Rs 20,000 subsidy for 27.2 lakh Backward Class households to install rooftop solar systems under the PM Surya Ghar Muft Bijli Yojana, with a total estimated cost of Rs 5,445.7 crore. The Cabinet also approved allocation of two hydropower projects — Balimela and Jalaput— to OPCL.