Naidu Confirms Amaravati as Site for Union Budget's Health and Education Cities
In a significant development, Chief Minister N Chandrababu Naidu informed his cabinet colleagues on Wednesday that the proposed health city and education city, announced in the recent Union budget, will be established in Amaravati. Naidu stated that the Union government has agreed to his proposal to locate both major projects in the capital city and has granted formal approval for the initiative.
Substantial Central Funding and Timelines Set
During the cabinet meeting held on February 11, Naidu also revealed that the Centre has consented to release Rs 12,000 crore to Andhra Pradesh under the Jal Jeevan Mission. He emphasized that this critical water supply project must be completed within a strict three-year timeframe to ensure timely benefits for the state's residents.
Comprehensive Cabinet Approvals Across Departments
The Andhra Pradesh cabinet approved a wide array of proposals spanning multiple sectors, including irrigation, revenue, energy, housing, information technology, and municipal administration. Key legislative changes include amendments to the Andhra Pradesh Assigned Lands (Prohibition of Transfers) Act, 1977, which replace the 2025 ordinance. Additionally, the deadline for filing applications to regularize encroachments in Gajuwaka and unauthorized dwelling units on unobjectionable government land has been extended to June 30, 2026.
Land and Energy Projects Receive Green Light
Approval was granted for changing land purpose at Keesarapalli to construct buildings for Customs staff and for alienating government land to establish a compressed bio-gas plant in Eluru district. In a major energy initiative, the cabinet cleared the alienation of 1,500 acres in Nossam village, Nandyal district, for a 250 MW solar project. This project will operate under a lease agreement of Rs 31,000 per acre per year, with a 5% escalation every two years.
Advancements in Technology and Infrastructure
In the ITE&C department, the government approved the Andhra Pradesh AI Living Labs initiative, which involves setting up a Section 8 company and amending the Memorandum of Understanding with NVIDIA. The cabinet also cleared the development of a disaster recovery center for the AP State Data Centre in Tirupati under the Build-Own-Operate-Transfer (BOOT) model. Furthermore, permission was given to develop the Amaravati Marina through a Public-Private Partnership (PPP) mode with a 33-year lease structure.
Housing, Port, and Additional Agenda Items
The unit cost for the Pradhan Mantri Awas Yojana (PMAY) Gramin 2.0 was fixed at ₹2,39,000, incorporating convergence and Self-Help Group (SHG) loan components. The government approved refinancing the Ramayapatnam Port Development Corporation loan through the Sagarmala Finance Corporation Limited, along with issuing related guarantees and comfort letters.
Among additional agenda items, two self-contained Special Investigation Team (SIT) notes on ghee adulteration were presented to the cabinet. Ratification was provided for emergency irrigation works previously cleared by the engineer-in-chief, and amendments to the AP Fire Services Act were approved, replacing the 2025 ordinance. The cabinet also approved special remission for a life convict as directed by the high court.
Key Administrative Decisions
- Approved the renaming of Swarna Grama and Swarna Ward as Swarna Sachivalayams.
- Cleared the proposal to lease assigned lands for solar energy projects at a rate of Rs 30,000 per acre per year, with a 5% increase after two years.
- Cleared revised administrative sanction for 7,189 operation and maintenance works in the Water Resources Department for the 2025-26 fiscal year.
- Approved three additional qualifying dates—April 1, July 1, and October 1—for the preparation of electoral rolls under the Panchayat Raj Act.
- Approved two pumped storage projects at Yaganti and Rajupalem to be executed independently by APGENCO.
- Granted extensions for renewable energy project timelines sought by Suzlon Energy and Axis Energy.
- Approved alienation of 1 acre in Tirupati district for a community hall for the All India Velama Association.
