VISAKHAPATNAM: The Andhra Pradesh government has approved the allotment of land and tailor-made incentives for two major data centre projects in Visakhapatnam and Anakapalli districts, with a combined proposed investment of Rs 1.44 lakh crore and a total capacity of 1,486 MW.
The approvals, issued through separate government orders of the Information Technology, Electronics and Communications Department on August 21, provide for land allotment and a package of fiscal and non-fiscal incentives to Data Centre Holdings India LLP and Renew AP Green Data Center Private Limited.
The Visakhapatnam project, proposed by Data Centre Holdings India LLP, involves an investment of Rs 58,743 crore and a capacity of 486 MW, with an employment commitment of 1,250 jobs. The government has approved 200 acres at Jagnadhapuram in Anandapuram mandal for the project, with the land to be allotted at a 25% discount on the APIIC cost, subject to a cap of Rs 30 crore.
The project has been granted several incentives, including a 10% capital subsidy on machinery and equipment, capped at Rs 1,800 crore, and reimbursement of net SGST on construction and leasing costs, subject to specified ceilings. It will also receive a Rs 1 per unit power discount for 15 years, electricity duty exemption for 20 years and concessions on renewable and carbon-free energy access.
The government has also approved reimbursement of the cost of electrical infrastructure development and upgradation, capped at Rs 150 crore. APIIC will develop road access to the site, with the estimated Rs 4.5-crore cost to be funded by the IT, Electronics and Communications Department.
Other concessions include flexibility in parking and building norms, priority allocation of green power, assured water supply through GVMC, permission for multi-level diesel generator installations and facilitation of power trading and deemed distribution licence status as per applicable rules.
The second project, proposed by Renew AP Green Data Centre Private Limited, is planned at Makavaripalem in Anakapalli district. It involves an investment of Rs 85,200 crore, a proposed capacity of 1,000 MW and an employment potential of 1,880 jobs.
The government has approved 433.30 acres for the project at the fixed APIIC price. The project is expected to be completed within nine years and five months.
The approved package includes a 10% capital subsidy on machinery and equipment, capped at Rs 3,700 crore, and reimbursement of net SGST accrued to the State on capital investment for 10 years, subject to a ceiling of Rs 5,000 crore.
The company will also receive a Rs 1 per unit power tariff discount for 15 years, capped at Rs 2,500 crore, along with exemption from transmission and wheeling charges for 20 years, subject to a Rs 3,000-crore ceiling. A 20-year electricity duty exemption, capped at Rs 200 crore, and full reimbursement of stamp duty and registration charges up to Rs 5 crore have also been approved.
The Anakapalli project will be eligible for relaxation of floor space index beyond three, parking norms and consideration for Mission Critical Infrastructure status. Basic infrastructure, including roads and a water pipeline, will form part of the land cost, while water charges will be paid at applicable APIIC rates.
The projects come under the Andhra Pradesh Data Centre Policy (4.0) 2024-29, under which investments exceeding Rs 5,000 crore and data centre capacity of more than 50 MW are treated as mega projects eligible for tailor-made incentives.
The government has directed APTS and APIIC to take further action for implementing the approvals.
