Andhra Pradesh cabinet approves new policies to boost investment in artificial intelligence

In an Andhra Pradesh cabinet meeting held on Tuesday at the Amaravati Secretariat under the chairmanship of Chief Minister N. Chandrababu Naidu, policy frameworks to attract investment in various sectors, including Artificial Intelligence (AI), electronics, and renewable energy, were approved. According to a report by The Hindu, the cabinet has cleared the Animation, Visual Effects, Gaming, Comics and Extended Reality (AVGC-XR) Policy 2026-31 as well as the Robotics and Physical AI Policy 2026-36. Additionally, amendments have been made to the Semiconductor and Display Fab Policy 2024-29.

In the key investment proposals, the cabinet approved an investment of ₹31,387 crore by AM Intelligence for a 512 MW Green Integrated AI Data Centre at Amanam in Bhimunipatnam mandal of Visakhapatnam district. Approval was granted to allot approximately 25 acres of land to Reliance Industries for the construction of a giga-scale AI data centre at Bhogapuram in Vizianagaram district. Along with this, an Epack unit will be established at Rambilli in Anakapalli district for the production of AI data centre equipment, involving an investment of ₹570.20 crore and providing employment to 2,565 people.

Among other investments besides AI and technology, the cabinet chaired by Naidu approved the Carbon Cosmo Advanced Materials Manufacturing project worth ₹4,000.20 crore at Naidupeta. Land has been allotted to Dixon Technologies for an investment of ₹700 crore in Tirupati. In the pharmaceutical sector, Hetero Group has been allotted 173.82 acres of land for its units in the Nakkapalli Bulk Drug Park. An expansion project of Ravali Spinners worth ₹236.92 crore in West Godavari district has been approved, which is expected to provide employment to 1,569 people.

A proposal to establish a 30-acre FICCI FLO Industrial Park at Jagayyapeta in NTR district for women entrepreneurs was also approved. Additionally, the establishment of an Integrated Footwear Park spanning 56.82 acres in Annamayya district and an MSME park in Thamballapalle has received the green light.

In the energy sector, the cabinet approved the establishment of compressed biogas plants in NTR, Prakasam, and Vizianagaram districts. Agreement was also reached to explore the possibility of establishing nuclear power plants using Small Modular Reactor (SMR) technology as an alternative to thermal power. Approval was given to transfer 5.50 acres of APGENCO land to the Vijayawada Municipal Corporation (VMC) for a 15 MW waste-to-energy plant. Furthermore, approval was granted to take 192.68 acres of Waqf land on a 30-year lease for a solar power project in Vajrakarur mandal of Anantapur district.

In administrative and other decisions, the cabinet approved the establishment of a dedicated Directorate of Traffic Management and Road Safety headquartered at Mangalagiri, which will function under the supervision of the DGP. Decisions were taken to lease five acres of land in Shakmuru for a Kendriya Vidyalaya and allot two acres of land in Penukonda for a Government Industrial Training Institute. Approval was given to create two posts of Principal Sannidhi Yadav and Sannidhi Yadav at the Tirumala Temple, as well as a post of Chief Founder in the Endowments Department. Previous land allotments to Websol Renewables and Metro Decorative in the Naidupeta Special Economic Zone have been withdrawn.