Andhra Pradesh Cabinet approves proposal to raise Rs 7,500 crore loan for industries development

Free travel for women, girls and transgenders on RTC buses from 15 August; Excise new policy adopts a lottery system for bar allotments, requiring at least four applications per bar.

Published Aug 06, 2025 | 7:54 PMUpdated Aug 06, 2025 | 7:54 PM

Andhra Pradesh Chief Minister N Chandrababu Naidu.

Synopsis: The ₹7,500 crore loan will support land acquisition, infrastructure development, and upgrades for major industrial clusters and parks across the state.

The Andhra Pradesh Cabinet on Wednesday, 6 August, made a slew of decisions to fuel industrial growth, tourism and women’s welfare, among others.

Briefing the media after the 27th meeting of the Cabinet, Public Relations Minister K Parthasarathi said 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 12 months.

The fund will support land acquisition, infrastructure development, and upgrades for major industrial clusters and parks across the state. Key decisions include:

  • Establishment of an SPV: A Special Purpose Vehicle (SPV) will be created with a registered office at APIIC Towers, Mangalagiri, with an authorised share capital of ₹1 crore and paid-up capital of ₹1 lakh. The SPV Board may increase capital as needed.
  • Loan authorisation: Authorised APIIC to secure ₹7,500 crore from banks/financial institutions, with the SPV Board empowered to approve the term sheet.
  • Land transfer: Identified industrial cluster and park lands will be transferred to the SPV at current Sub-Registrar Office (SRO) rates for undeveloped land and market/SRO rates for developed/semi-developed land, with infrastructure costs treated as equity infusion.
  • Negotiations: APIIC will negotiate with banks/financial institutions on security and land mortgages, in consultation with the Finance Department.

Related: Free bus rides for women, transgender persons in Andhra Pradesh

Excise policy

The Cabinet approved the Excise Department’s proposal for the 2025-28 Bar Policy based on recommendations from a Cabinet Sub-Committee formed via G.O Rt. No. 582 (29 August 2024). It reviewed policies from other states and stakeholder inputs.

  • The current bar policy (2022-25), based on auctions for 840 bars, expires on 31 August 2025.
  • The new policy adopts a lottery system for bar allotments, requiring at least four applications per bar.
  • Operating hours will be from 10:00 am to 11:00 pm.
  • 10% of bars (84) are reserved for toddy tappers’ welfare with a 50% fee reduction.
  • The licence period is from 1 September 2025, to 31 August 2028.

Permit rooms are reintroduced for A4 shops with a licence fee of ₹5-7.5 lakh based on Retail Excise Tax, allowing only ready-to-eat snacks in up to 1,000 sq.ft. spaces. This is expected to generate ₹256 crore annually and curb public drinking.

Also Read: Andhra eyes 55 percent rise in per capita income by 2029

Tourism: APTDC hotels and resorts

The Cabinet approved the Youth Advancement, Tourism, and Culture Department’s proposal to issue a Request for Proposal (RFP) to select agencies for the operation and maintenance (O&M) of 22 hotels and resorts under the Andhra Pradesh Tourism Development Corporation (APTDC), grouped into six clusters. The initiative aims to improve service quality, operational efficiency, and financial stability. Key points:

Eligibility criteria:

  • Operators must manage equivalent AC rooms/cottages and have operations in at least three Indian cities.
  • Minimum three years of continuous operation in the past seven financial years.
  • Average annual turnover from hospitality matching the cluster’s key requirements and positive net worth with growth over three years.
  • Preference for operators with three-star or higher experience.
  • Staffing: Of 418 employees, 46 permanent staff will remain with APTDC, while others transfer to the O&M operator.

Also Read: ‘Abysmal’ support for families as farmer suicides surge in Andhra’s Palnadu

Women’s welfare: Free bus travel scheme

Fulfilling the ruling coalition’s election promise, the Cabinet approved the Transport, Roads, and Buildings Department’s proposal to implement the “Free Bus Travel” scheme for women, girls, and transgender individuals from 15 August 2025, via AP State Road Transport Corporation (APSRTC) buses. Key details:

  • Applicable to Pallevelugu, Ultra Pallevelugu, City Ordinary, Express, and Metro Express buses.
  • Requires Aadhaar, voter ID, or ration card for verification.
  • Excludes non-stop interstate services, contract carriages, chartered services, and package tours.
  • Covers 74% of APSRTC buses (6,700), benefiting 26.95 lakh women daily at an annual cost of ₹1,942 crore.

Additional measures include the procurement of 3,000 electric bus this year, 1,400 more in two years, hiring drivers and mechanics, body cameras for female conductors, CCTV in buses, and improved bus station facilities.

IT and Electronics: AP LIFT Policy 

The Cabinet approved the AP Land Incentive for Tech Hub (LIFT) Policy 2024-2029 to establish the state as a tech hub post-Hyderabad bifurcation. The cost-based incentive strategy targets major companies by leveraging infrastructure and talent. Key provisions:

Eligibility:

  • IT/ITeS firms: Listed in Fortune/Forbes or $1 billion market cap/revenue, creating 3,000 jobs in three years (500 per acre).
  • Global Capability Centers (GCCs): 2,000 jobs in three years (500 per acre).
  • IT park developers: Developed 10 lakh sq.ft. commercial space, constructing 1 lakh sq.ft. per acre.
  • GCC developers: Anchor tenant agreement for 20% built-up space, 50% sold to eligible firms.
  • Land price: ₹0.99 per acre across the state.
  • Construction timeline: Statutory licenses and construction start within six months of the sale agreement.
  • Energy: Government guarantee for APDCL

The Cabinet approved a ₹900 crore government guarantee for Andhra Pradesh Power Development Company Ltd (APPDCL) to address its financial distress and avoid negative reporting to CIBIL, CRISIL, etc. Conditions include aligning interest rates with MCLR, no foreclosure charges, and a 2% commission on the guarantee amount.

The Cabinet approved increasing free electricity for hair-cutting saloons from 150 to 200 units per month for 40,808 registered saloons, costing ₹100 crore annually. This supports the Nai Brahmin community’s socio-economic upliftment, with ₹50 crore allocated in 2025-26 and an additional ₹50 crore required.

The Cabinet approved government guarantees for APSPDCL (₹3,544.57 crore) and APCPDCL (₹1,029.37 crore) to ensure timely implementation of the Revamped Distribution Sector Scheme (RDSS), supporting infrastructure and smart metering for improved power reliability and quality.

General Administration: Media accreditation rules

The Cabinet approved the repeal of the AP Media Accreditation Rules, 2023, and introduced the Comprehensive AP Media Accreditation Rules, 2025. The new rules include representation for print and electronic media journalists in accreditation committees and provisions for small newspapers.

Extension of ban on CPI (Maoist)

The Cabinet extended the ban on the Communist Party of India (Maoist) and its front organisations under the AP Public Security Act, 1992, for another year from August 17 and 9, 2025, due to ongoing disruptive activities.

Home Department: Assistant Public Prosecutors

The Cabinet approved five regular Assistant Public Prosecutor posts for new Judicial First-Class Magistrate Courts in Puttaparthi, Movva, Gannavaram, Gajuwaka, and a special court in Tirupati for red sandal smuggling cases, increasing the cadre strength from 204 to 209.

Revenue Department: Land for Industrial Park

The Cabinet approved transferring 81.227 cents of government land in Thammiganipalle village, Chittoor, to APIIC’s Zonal Manager for an industrial park at no cost.

Handlooms and Textiles: Support for weavers

Ahead of National Handloom Day, the Cabinet approved incentives for handloom workers, including 200 units of free electricity for handlooms, 500 units for power looms, 5% GST reimbursement, and a thrift fund for weavers. The initiatives aim to strengthen the sector, supporting 93,000 handloom families and 11,488 power loom units, with a total allocation of ₹648.59 crore.

(Edited by Majnu Babu).

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