AP Cabinet Pushes for Amaravati as Capital, Clears Major Infrastructure Projects

Amaravati – The Andhra Pradesh Cabinet, led by Chief Minister N. Chandrababu Naidu, has approved a proposal urging the Union government to amend the Andhra Pradesh Reorganisation Act, 2014, to formally designate Amaravati as the capital of the state. Currently, the Act only refers to it as the “Andhra Pradesh capital,” which leaves room for ambiguity.

The Cabinet, which met at the State Secretariat in Velagapudi, resolved to seek an amendment to Subsection (2) of Section 5 of the Act. Though no specific reason was officially cited, the move is seen as a measure to prevent any future shifts of the capital away from Amaravati.

In a series of major development decisions, the Cabinet approved several key proposals:

Energy Projects and Land Allotments

• The government will lease 191.64 acres in K Bommepalli, Kondapur Mandal of the YSR district to Adani Green Energy Limited through the New & Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) for a 1000 MW Pumped Hydro Storage Power Project. The lease rate is ₹31,000 per acre per year, with a 5% hike every two years, covering a 46-year term (40 operational + 6 construction years).
• The Cabinet also sanctioned the transfer of 1.95 acres in B Thandrapadu Village, Kurnool Rural Mandal, to Indian Oil Corporation Limited (IOCL) for setting up an LNG Hub under the City Gas Distribution Project, at a cost of ₹61.23 lakh per acre based on current market value.
• In Visakhapatnam district, 18.70 acres of land in Annavaram Village will be handed over to the Andhra Pradesh Tourism Authority for the development of a beach resort and convention centre.

Major Infrastructure and Development Initiatives

• A new special purpose vehicle, Jalaharati Corporation, will be formed as a 100% state-owned enterprise to fast-track the Polavaram–Banakacharla Godavari–Krishna–Penna river-linking project, which is a key priority of the CM.
• The Andhra Pradesh Capital Region Development Authority (APCRDA) Commissioner was authorised to finalise and award the lowest bids for four infrastructure projects worth ₹1,732.3 crore, under the Amaravati Capital City Development Programme.
• The Amaravati Development Corporation Limited (ADCL) was authorised to approve L1 bids for two road expansion packages:
  • Package XXXXI: E15 Road to Old NH, Mangalagiri (₹72.79 crore)
  • Package XXXXII: E13 Road to NH-16 (₹400.56 crore)
• Administrative sanctions were granted for three additional infrastructure packages:
  • Package XXXXIII: ₹560.57 crore for design, construction, and maintenance works under ADB and World Bank funding.
  • Package XXXXIV: ₹494.86 crore for advanced water supply systems, including SCADA, AI-powered water management (Digital Twin), and five years of maintenance.
  • Package XXXXV: ₹593.03 crore for a 6-lane elevated corridor, connecting to NH-16, including bridges, underpasses, and utility lines to enhance connectivity in Amaravati.

Industrial Development Boost

• The Cabinet approved an increase in compensation for land acquisition by the Andhra Pradesh Maritime Board (APMB) from ₹16 lakh to ₹20 lakh per acre for setting up an industrial hub in Ravooru Village, Nellore district.
• It also sanctioned the transfer of acquired and to-be-acquired lands, including government salt lands, from APMB to the Andhra Pradesh Industrial Infrastructure Corporation (APIIC). These lands will be used to develop industrial zones near coastal ports.

Team Maverick.