Cabinet clears ₹1,549 crore for critical infrastructure in Amaravati

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The Cabinet has also ratified SIPB recommendations, including allotment of three acres in Visakhapatnam to Muthoot Fincorp for a ₹100-crore AI project, says I&PR Minister K. Parthasarathy. | Photo Credit: File Photo

The Andhra Pradesh Cabinet on Wednesday approved the revised administrative sanction of ₹1,548.98 crore for critical infrastructure in all the gram panchayats of Amaravati capital city, replacing the earlier sanction of ₹904 crore, I&PR Minister Kolusu Parthasarathy said.

The revised plan covers 76.02-km of water supply lines, 30.16-km of sewerage systems, 309.30-km of stormwater drains, 69.68-km of roads and 2,597 streetlights.

An additional ₹644.98 crore was approved for works under the negotiated settlement policy. “Execution will be package-wise, instead of LPS zone-wise, while the seven-year maintenance period will be replaced by a two-year defect-liability period and EPC mode by a lump-sum contract,” the Minister said.

The Cabinet approved amendments to the APCRDA Land Pooling Rules, 2025, to enable minimum annual annuity payments to eligible farmers who contributed less than one acre of dry or wet land. It ratified ₹5.04 crore in annuity to 1,304 eligible farmers whose ownership was established by December 2, 2025, he said.

Mr. Parthasarathy said the Cabinet also approved the Group of Ministers’ recommendations on fresh and earlier land allotments in the CRDA region, and authorised the CRDA Commissioner to take further action under the Amaravati Land Allotment Rules, 2017.

The Cabinet cancelled the earlier ₹798-crore sanction for the Assembly building in Super Block 'E' and approved a fresh sanction of ₹661 crore on a design-build item-rate (lump-sum) basis.

It also approved the Andhra Pradesh Common Land Pooling Scheme Rules, 2026, excluding APCRDA, and promotion channels for eligible Ward Secretaries in Swarna Ward Secretariats, he said.

The Cabinet ratified SIPB recommendations, including allotment of three acres in Visakhapatnam to Muthoot Fincorp for a ₹100-crore AI project with employment potential of 2,400. It approved quantum technology projects under the State’s Quantum Computing Policy and incentives for four and five-star hotel projects in Amaravati, Kadapa and Tirupati. The investment in a proposed five-star twin-hotel project in Amaravati was revised to ₹539 crore, with employment potential of 700, the Minister said.

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