09-01-2026 12:00:00 AM
The Andhra Pradesh Cabinet chaired by Chief Minister N. Chandrababu Naidu on Thursday, approved a wide-ranging set of policy and investment decisions aimed at accelerating industrial growth, strengthening infrastructure, expanding social welfare, and improving governance across sectors. A key decision was the approval to restructure the Andhra Pradesh Logistics Infrastructure Corporation (APLINC) into a comprehensive logistics holding company, along with the creation of an Andhra Pradesh Logistics Fund as an Alternative Investment Fund. The State will act as the initial sponsor with a 10-20% equity stake.
The Cabinet also cleared the Andhra Pradesh Cluster Development Program (AP-CDP) with a Rs 200-crore outlay to establish at least 45 MSME Common Facility Centers over five years, prioritizing women, SC/ST-led enterprises and backward regions.Several large investment proposals cleared by the State Investment Promotion Board (SIPB) were ratified across Tirupati, Nellore, Kadapa, Vizianagaram, Nandyal and Chittoor districts. Notable among them are a 10 GW ingot and wafer manufacturing plant by Tata Power Renewable Energy in Nellore, a 4 GW solar cell and module facility in Naidupeta, and multiple tourism projects at Suryalanka and Penukonda.
In the excise sector, the Cabinet approved withdrawal of the Additional Retail Excise Tax (ARET) on bars to remove pricing disparities, while allowing a Rs 10 per bottle increase in IMFL and foreign liquor MRPs, a move expected to fetch about Rs 1,391 crore in additional annual revenue. Microbreweries were permitted in tourism zones and premium hotels beyond municipal limits. Major social sector decisions included a Rs 5,000-crore government guarantee for Jal Jeevan Mission loans, approval for a new government degree college at Kotabommali from 2026–27, procurement of student kits worth Rs 944.53 crore for government school students, and sanction of a Rs 1,500-crore loan to sustain Scheduled Caste welfare schemes.
CM Chandrababu Naidu calls for water transport, power reforms
After the meeting, Chief Minister Chandrababu Naidu held discussions with ministers, stressing the need to develop inland and coastal water transport as a growth driver and calling for a port in every coastal district. He said the State was absorbing Rs 4,490 crore in legacy power “true-up” charges to protect consumers and noted that power tariffs had already been reduced from Rs 5.19 to Rs 4.90 per unit, with a target of Rs 4.80 by March. The Chief Minister underlined tourism as a game changer, urged faster completion of irrigation projects through better coordination, and said surplus water flowing into the sea should be productively utilized. Emphasising reforms in power, logistics and agriculture, he said the Cabinet’s decisions reflected the government’s resolve to place Andhra Pradesh firmly on a high-growth trajectory.