Amaravati: Andhra Pradesh's Cabinet on Thursday approved a sweeping set of investment, infrastructure and healthcare decisions led by a Rs 1.08 lakh crore Reliance Industries AI data centre project in Visakhapatnam and a Rs 1 lakh-cr Integrated Horticulture Development Plan aimed at transforming Rayalaseema into a global horticulture hub.
Briefing reporters after the Cabinet meeting chaired by Chief Minister N Chandrababu Naidu, information and public relations minister K Parthasarathy said the government cleared a series of strategic projects spanning AI infrastructure, clean energy, healthcare digitisation, advanced manufacturing and MSME financing.
The Cabinet approved allocation of 854.97 acres to Reliance Industries Limited for a giga-scale AI Data Centre integrated with a cable landing station near Bhogapuram in Visakhapatnam district. The project, involving an estimated investment of Rs 1,08,010 crore, received land allotment at a 25 per cent concessional rate along with project-specific incentives recommended by the State Investment Promotion Board (SIPB). The government said the AI infrastructure project is expected to generate direct employment for around 1,000 people while creating large-scale indirect jobs across construction, IT services and manufacturing ecosystems.
In a parallel agriculture-focused decision, the Cabinet approved the Integrated Horticulture Development Plan (IHDP), a Rs 1 lakh-cr programme designed to double horticulture output in Rayalaseema from 222 lakh tonnes to 435 lakh tonnes. The project combines irrigation expansion, rural roads, value-chain infrastructure and horticulture investments under a converged development framework.
Officials said the Centre is expected to contribute Rs 40,000 crore towards the programme, while the remaining Rs 60,000 crore will be mobilised through private investment. Of the central component, Rs 20,884 crore has been earmarked for irrigation works, Rs 14,906 crore for horticulture development and Rs 4,562 crore for rural roads.
The Cabinet also cleared Andhra Pradesh's statewide "Sanjeevani" Integrated Digital Care Coordination and Healthcare Delivery System with first-year spending of Rs 149 crore. Separately, administrative sanction was granted for the "104 Diagnostics Programme" to deliver 41 diagnostic tests annually to estimated 50-60 lakh citizens through 904 mobile medical units.Among major industrial approvals, the Cabinet sanctioned incentives for Carrier Air-conditioning & Refrigeration Limited to establish an advanced cooling systems manufacturing facility at Sri City with an investment of Rs 863 crore and projected employment for 721 people.
The government also approved incentives for Royal Enfield to establish a Greenfield motorcycle manufacturing facility in Tirupati district with an investment of Rs 2,508 crore and an estimated 3,000 jobs. The Cabinet has approved some other projects, including Rs 6,100 crore expansion by Apollo Tyres Limited in Chittoor district, Rs 3,153 crore enzyme manufacturing facility by International Flavors & Fragrances in Nellore district, Rs 3,149 crore solar cell and module manufacturing unit by Gridon Energy Private Limited in Kurnool district and expansion project by Chettinad Cement Corporation Private Limited in Palnadu district.
The Cabinet further approved multiple renewable energy projects under the AP Integrated Clean Energy Policy 2024, including Reliance's proposed 6600 MW solar and battery storage project in Sri Sathya Sai district and Adani Hydro Energy's 2250 MW Gandikota-2 Pumped Storage Project in Kadapa district.
In the strategic technology sector, the government approved establishment of a dedicated naval quantum-computing R&D centre by the Naval Science and Technological Laboratory within Amaravati Quantum Valley.
The Cabinet also cleared creation of the Andhra Pradesh SME Exchange (APSMEX) to improve MSME access to equity capital markets and approved formation of a state-level task force for its implementation.
Separately, the government approved "AP FIRST," a Section 8 innovation platform leveraging infrastructure at Indian Institute of Technology Tirupati, Indian Institute of Science Education and Research Tirupati, and state universities.