AP Cabinet Clears Logistics Body, Funds, Mega Projects
ECONOMY & POLICY

AP Cabinet Clears Logistics Body, Funds, Mega Projects

The Andhra Pradesh Cabinet on Thursday approved a series of decisions aimed at accelerating economic growth, boosting employment and strengthening social infrastructure, as the state pushes to emerge as a major industrial and logistics hub.

Chaired by Chief Minister N. Chandrababu Naidu, the Cabinet cleared the creation of the Andhra Pradesh Logistics Infrastructure Corporation (APLINC) along with a dedicated Logistics Fund. Briefing the media, Information Minister Kolusu Parthasarathy said the measures are designed to build strong institutional frameworks for industrial growth, attract large investments and generate employment at scale.

APLINC will function as an integrated holding company to plan, develop and manage logistics infrastructure across the state. Complementing this, the AP Logistics Fund will be structured as an Alternative Investment Fund, with the state government acting as the initial sponsor by contributing 10–20 per cent of the capital, while professional asset managers and trustee firms handle governance and operations.

The Cabinet also approved construction of the AP Judicial Academy at Amaravati at a cost of Rs 1.65 billion. In addition, it extended a government guarantee for a Rs 50 billion loan from National Bank for Financing Infrastructure and Development under the Jal Jeevan Mission to provide tap water connections to rural households.

In a key decision related to the port sector, the Cabinet approved the renaming of the captive port at DL Puram in Anakapalli district as M/s AMNS Ports Rajayyapeta Pvt Ltd, a special purpose vehicle of ArcelorMittal Nippon Steel.

To revitalise the MSME ecosystem, the Cabinet cleared the AP Cluster Development Programme with an outlay of Rs 2 billion. The scheme envisages setting up 45 Common Facility Centres in MSME parks over the next five years, generating direct employment for about 7,500 people. In line with the One Family–One Entrepreneur vision, priority will be given to rural areas and enterprises led by women and SC/ST entrepreneurs.

The Cabinet also endorsed major land allotments recommended by the State Investment Promotion Board. These include 149 acres in Tirupati district for M/s Ethereal Exploration Guild to develop end-to-end launch vehicles under the proposed Space City initiative, and 55 acres in Chittoor district for M/s Pioneer Clean Amps to establish a flight training school and an MRO facility for Hansa-3 aircraft. Large green energy projects by Tata Power for a 10 GW ingot and wafer plant, and Websol Renewable for a 4 GW solar cell facility in Nellore and Tirupati districts, were also approved along with incentives.

Providing relief to the hospitality sector, the Cabinet abolished the additional retail excise tax on bars to ensure price parity with retail outlets. However, the maximum retail price of IMFL and foreign liquor, excluding the Rs 99 category, will rise marginally by Rs 10 per bottle, a move expected to generate an additional Rs 13.91 billion annually. Microbreweries have been permitted near municipal corporations and in three-star hotels.

On the social sector front, a Rs 15 billion loan was sanctioned to the SC Cooperative Finance Corporation to ensure uninterrupted implementation of welfare schemes. The Cabinet also approved a proposal to set up a new government degree college at Kotabommali in Srikakulam district to cater to the educational needs of coastal backward regions. Amendments to the AP Public Libraries Act, 1960 were cleared, removing discriminatory provisions against persons affected by leprosy in line with Supreme Court directives.

In the power sector, concessions for the ferro alloys industry were extended for another year, while administrative approval was accorded for the Rs 73.76 billion Kamalapadu Pumped Storage Hydro Project with a capacity of 950 MW.

The Andhra Pradesh Cabinet on Thursday approved a series of decisions aimed at accelerating economic growth, boosting employment and strengthening social infrastructure, as the state pushes to emerge as a major industrial and logistics hub. Chaired by Chief Minister N. Chandrababu Naidu, the Cabinet cleared the creation of the Andhra Pradesh Logistics Infrastructure Corporation (APLINC) along with a dedicated Logistics Fund. Briefing the media, Information Minister Kolusu Parthasarathy said the measures are designed to build strong institutional frameworks for industrial growth, attract large investments and generate employment at scale. APLINC will function as an integrated holding company to plan, develop and manage logistics infrastructure across the state. Complementing this, the AP Logistics Fund will be structured as an Alternative Investment Fund, with the state government acting as the initial sponsor by contributing 10–20 per cent of the capital, while professional asset managers and trustee firms handle governance and operations. The Cabinet also approved construction of the AP Judicial Academy at Amaravati at a cost of Rs 1.65 billion. In addition, it extended a government guarantee for a Rs 50 billion loan from National Bank for Financing Infrastructure and Development under the Jal Jeevan Mission to provide tap water connections to rural households. In a key decision related to the port sector, the Cabinet approved the renaming of the captive port at DL Puram in Anakapalli district as M/s AMNS Ports Rajayyapeta Pvt Ltd, a special purpose vehicle of ArcelorMittal Nippon Steel. To revitalise the MSME ecosystem, the Cabinet cleared the AP Cluster Development Programme with an outlay of Rs 2 billion. The scheme envisages setting up 45 Common Facility Centres in MSME parks over the next five years, generating direct employment for about 7,500 people. In line with the One Family–One Entrepreneur vision, priority will be given to rural areas and enterprises led by women and SC/ST entrepreneurs. The Cabinet also endorsed major land allotments recommended by the State Investment Promotion Board. These include 149 acres in Tirupati district for M/s Ethereal Exploration Guild to develop end-to-end launch vehicles under the proposed Space City initiative, and 55 acres in Chittoor district for M/s Pioneer Clean Amps to establish a flight training school and an MRO facility for Hansa-3 aircraft. Large green energy projects by Tata Power for a 10 GW ingot and wafer plant, and Websol Renewable for a 4 GW solar cell facility in Nellore and Tirupati districts, were also approved along with incentives. Providing relief to the hospitality sector, the Cabinet abolished the additional retail excise tax on bars to ensure price parity with retail outlets. However, the maximum retail price of IMFL and foreign liquor, excluding the Rs 99 category, will rise marginally by Rs 10 per bottle, a move expected to generate an additional Rs 13.91 billion annually. Microbreweries have been permitted near municipal corporations and in three-star hotels. On the social sector front, a Rs 15 billion loan was sanctioned to the SC Cooperative Finance Corporation to ensure uninterrupted implementation of welfare schemes. The Cabinet also approved a proposal to set up a new government degree college at Kotabommali in Srikakulam district to cater to the educational needs of coastal backward regions. Amendments to the AP Public Libraries Act, 1960 were cleared, removing discriminatory provisions against persons affected by leprosy in line with Supreme Court directives. In the power sector, concessions for the ferro alloys industry were extended for another year, while administrative approval was accorded for the Rs 73.76 billion Kamalapadu Pumped Storage Hydro Project with a capacity of 950 MW.

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