Amaravathi: On Wednesday, August 6, the Andhra Pradesh Cabinet took a number of decisions aimed at promoting women’s welfare, tourism, and industrial growth.
The council of ministers has approved a proposal by the Industries and Commerce Department to raise a loan of ₹7,500 crore through the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) for industrial development over the next nine to twelve months, Public Relations Minister K Parthasarathi told the media following the 27th Cabinet meeting.
The fund will assist with the purchase of property, the construction of infrastructure, and the improvement of parks and significant industrial clusters around the state. Important choices include:
Creation of a Special Purpose Vehicle (SPV): An SPV will be established with a registered office at the APIIC Towers in Mangalagiri, a paid-up capital of ₹1 lakh, and an authorized share capital of ₹1 crore. If necessary, the SPV Board may raise cash.
Loan authorization: The SPV Board has the authority to approve the term sheet, and APIIC has been given permission to obtain ₹7,500 crore from banks and other financial institutions.
Land transfer: The SPV will receive identified industrial cluster and park lands at market/SRO prices for developed/semi-developed land and current Sub-Registrar Office (SRO) rates for undeveloped land. Infrastructure costs will be recognized as equity infusion.
Negotiations: After consulting with the Finance Department, APIIC will negotiate security and land mortgages with banks and other financial organizations.
Policy on Excise
Based on the recommendations of a Cabinet Sub-Committee established by G.O. Rt. No. 582 (29 August 2024), the Cabinet authorized the Excise Department’s proposal for the 2025–28 Bar Policy. It examined stakeholder feedback and other states’ policies.
On August 31, 2025, the existing bar policy (2022–25), which is based on auctions for 840 bars, ends.
The new policy requires at least four applications per bar and uses a lottery mechanism for bar allocations.
10:00 am to 11:00 pm will be the hours of operation.
10% of bars (84), together with a 50% fee discount, are set aside for the welfare of toddy tappers.
The license will be in effect from September 1, 2025, until August 31, 2028.
With a license price of ₹5-7.5 lakh based on Retail Excise Tax, permit rooms have been reinstated for A4 stores. These spaces can only accommodate ready-to-eat snacks and have a maximum size of 1,000 square feet. This is anticipated to reduce public drinking and generate ₹256 crore yearly.
Travel: APTDC resorts and hotels In order to select agencies for the operation and maintenance (O&M) of 22 hotels and resorts under the Andhra Pradesh Tourism Development Corporation (APTDC), which are divided into six clusters, the Youth Advancement, Tourism, and Culture Department proposed that the Cabinet approve a Request for Proposal (RFP). The initiative’s goals are to increase financial stability, operational effectiveness, and service quality. Important points:
Qualifications:
Operators must run at least three Indian cities and oversee comparable AC rooms and villas.
operating continuously for at least three of the previous seven fiscal years.
Average yearly revenue from the hospitality industry that satisfies the cluster’s essential needs and generates a positive net worth with three-year growth.
Operators with three-star or more experience are preferred.
Staffing: Of the 418 workers, 46 will stay on as permanent employees of APTDC, while the remaining personnel will go to the O&M operator.
Welfare of women: Free bus transportation program The Cabinet accepted the Transport, Roads, and Buildings Department’s plan to introduce the “Free Bus Travel” program for women, girls, and transgender people starting on August 15, 2025, via AP State Road Transport Corporation (APSRTC) buses, in keeping with the ruling coalition’s election pledge. Important information:
This applies to City Ordinary, Pallevelugu, Ultra Pallevelugu, Express, and Metro Express buses.
requires authentication via a ration card, voter ID, or Aadhaar.
excludes package tours, contract carriages, chartered services, and nonstop interstate transportation.
At an annual cost of ₹1,942 crore, it benefits 26.95 lakh women per day by covering 74% of APSRTC buses (6,700).
The purchase of 3,000 electric buses this year and 1,400 more in the next two years, the employment of mechanics and drivers, body cams for female conductors, CCTV in buses, and better bus station amenities are other initiatives.
Electronics and IT: AP LIFT Policy
The AP Land Incentive for Tech Hub (LIFT) Policy 2024-2029, which aims to make the state a tech hub after the Hyderabad bifurcation, was approved by the Cabinet. The cost-based incentive approach uses expertise and infrastructure to target large corporations. Important clauses:
Qualifications:
IT/ITeS companies: $1 billion in market capitalization/revenue, Fortune/Forbes listed, and have created 3,000 jobs in three years (500 per acre).
Global Capability Centers (GCCs): 500 jobs per acre, or 2,000 jobs in three years.
Developers of the IT park built 10 lakh square feet of commercial space, with one lakh square feet per acre.
GCC developers: 50% sold to qualified companies, 20% built-up space under anchor tenant arrangement.
The cost of land is ₹0.99 per acre in the state.
Timeline for construction: Within six months of the selling agreement, statutory licensing and construction begin.
Energy: APDCL is guaranteed by the government
A government guarantee of ₹900 crore was authorized by the Cabinet for Andhra Pradesh Power Development Company Ltd (APPDCL) in order to alleviate its financial difficulties and prevent unfavorable reporting to CIBIL, CRISIL, and other agencies. A 2% commission on the guarantee amount, no foreclosure fees, and interest rates that match MCLR are among the requirements.
At an annual cost of ₹100 crore, the Cabinet authorized raising the free electricity for hair-cutting saloons from 150 to 200 units per month for 40,808 registered saloons. The socio-economic advancement of the Nai Brahmin community is supported by this, with ₹50 crore allotted in 2025–2026 and another ₹50 crore needed.
In order to assure the timely execution of the Revamped Distribution Sector Scheme (RDSS), supporting infrastructure, and smart metering for enhanced power dependability and quality, the Cabinet approved government guarantees for APSPDCL (₹3,544.57 crore) and APCPDCL (₹1,029.37 crore).
General Administration: Guidelines for media accreditation
The Comprehensive AP Media Accreditation Rules, 2025, were introduced after the Cabinet authorized the repeal of the AP Media Accreditation Rules, 2023. The new regulations include allowances for small newspapers and representation for journalists working in print and electronic media on accreditation committees.
Extension of the Maoist CPI ban
Due to persistent disruptive operations, the Cabinet decided to prolong the AP Public Security Act, 1992’s prohibition on the Communist Party of India (Maoist) and its front organizations for an additional year, from August 17 to August 9, 2025.
Assistant Public Prosecutors, Home Department The cadre strength increased from 204 to 209 after the Cabinet granted five regular Assistant Public Prosecutor positions for the new Judicial First-Class Magistrate Courts in Puttaparthi, Movva, Gannavaram, and Gajuwaka, as well as a special court in Tirupati for cases involving the smuggling of red sandals. Department of Revenue: Industrial Park Land The Cabinet authorized the free transfer of 81.227 cents of government land for an industrial park to APIIC’s zonal manager in Thammiganipalle village, Chittoor.
Textiles and Handlooms: Assistance for Weavers
The Cabinet authorized incentives for handloom workers ahead of National Handloom Day, including a thrift fund for weavers, 5% GST reimbursement, and 200 units of free energy for handlooms and 500 units for power looms. With a total allocation of ₹648.59 crore, the initiatives support 11,488 power loom units and 93,000 handloom families in an effort to boost the sector.
