Andhra Pradesh Cabinet clears fresh land pooling for Amaravati development

The decision marks a renewed push to develop Amaravati as a “futuristic capital”, with major infrastructure projects planned. During its previous tenure from 2014 to 2019, the Chandrababu Naidu-led government had pooled 34,000 acres of land from farmers under a voluntary system.

Published Jun 24, 2025 | 8:09 PMUpdated Jun 24, 2025 | 8:09 PM

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Synopsis: The Andhra Pradesh Cabinet has approved a second phase of land pooling for the development of Amaravati, including a proposed greenfield airport and updated infrastructure in the capital region. Amendments to the 2015 Land Pooling Rules were cleared to standardise land procurement, with an estimated 45,000 acres to be pooled.

The Andhra Pradesh Cabinet on Tuesday, 24 June approved a second phase of land pooling for Amaravati, aimed at advancing the capital’s infrastructure development, including a proposed greenfield airport.

The meeting, held at the State Secretariat, cleared amendments to the Land Pooling Rules, 2015, to enable uniform land procurement policies. Though the Cabinet did not formally disclose the extent of land to be pooled, sources indicate it could be approximately 45,000 acres.

The decision marks a renewed push to develop Amaravati as a “futuristic capital”, with major infrastructure projects planned. During its previous tenure from 2014 to 2019, the Chandrababu Naidu-led government had pooled 34,000 acres of land from farmers under a voluntary system.

Announcing the decisions to the media, Information and Public Relations Minister K Parthasarathy said, “It would be a better package for the farmers. They would have free education and medical aid. The joint collectors would make a fresh survey of the assigned, endowments, and lanka-lands to decide on the ownership of the lands to prevent future litigation.”

He added that the amended rules would adhere to directives issued by the Supreme Court and the National Green Tribunal concerning the protection of water bodies, aiming to ensure farmers face no procedural difficulties.

In a related development, the Cabinet also authorised the Andhra Pradesh Capital Region Development Authority (APCRDA) Commissioner to approve L1 bids for three key projects within the Amaravati Government Complex:

  • The Integrated AP State Secretariat and HOD offices (GAD Tower),
  • Towers 1 and 2,
  • Towers 3 and 4.

Also Read: Amaravati rising: Andhra Pradesh’s bid for a secure administrative future

Godavari-Banakacharla Link project to continue amidst Telangana objections

The Andhra Pradesh Cabinet also discussed objections raised by Telangana to the proposed Godavari-Banakacharla (GB) Link project and decided to proceed, maintaining that it seeks to utilise only surplus floodwaters that would otherwise drain unutilised into the Bay of Bengal.

Chief Minister N Chandrababu Naidu reportedly emphasised that both Andhra Pradesh and Telangana could benefit from the floodwaters for irrigation purposes.

“The Chief Minister does not want any friction with the neighbouring state and prefers dialogue to confrontation,” Information and Public Relations Minister K Parthasarathy told reporters.

He further said that Andhra Pradesh remained committed to the welfare of Telangana as well, and expressed confusion over the neighbouring state’s objections to the project. The Cabinet noted that there would be no issue if Telangana chose to utilise similar floodwaters from the Godavari River.

Parthasarathy informed the media that the project’s pre-feasibility report had already been submitted to the Centre for clearance, and that the detailed project report (DPR) would be completed and submitted shortly.

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Legal action against Jagan Mohan Reddy over death of YSRCP worker

Responding to questions on political developments, Parthasarathy defended the state’s decision to register cases against former Chief Minister and Yuvajana Sramika Rythu Congress Party (YSRCP) chief YS Jagan Mohan Reddy over the death of a party worker during his recent visit to the Palnadu district.

“The YSRCP chief was in the car when it ran over the YSRCP worker. He should share the responsibility,” the minister said, questioning how the state government could be held liable for the death of a member of the opposition’s own party.

He contended that Jagan Mohan Reddy should have taken police permission for his convoy. “Despite the police allowing only a limited number of vehicles, he encouraged a large rally of party workers, leading to near lawlessness,” Parthasarathy said.

“In the melee, the party worker died, and Jagan is responsible for it,” he asserted.

Revised land terms cleared for IIULER; more Anna Canteens to be set up

In another key decision, the state Cabinet approved revised land allocation terms for the India International University of Legal Education and Research (IIULER), aimed at promoting legal education in Andhra Pradesh.

Under the revised terms, land will be offered either at ₹50 lakh per acre on a freehold basis, or at ₹1 per square metre annually on a 60-year lease, renewable after 30 years. The Cabinet was informed that IIULER will opt for the lease model.

Providing further details from the meeting, Minister K Parthasarathy said the Cabinet also sanctioned the establishment of seven new Anna Canteens in rural areas, at an estimated cost of ₹447 lakh.

Additionally, the Cabinet ratified the ongoing operations of two existing Anna Canteens – one located in Kuppam and another at the Andhra Pradesh High Court.

The cabinet approved amendments to the Andhra Pradesh Building Rules, 2017 (GOMs No.119, dated 28 March 2017), aimed at enhancing the welfare of construction workers and boosting the state’s construction sector.

Approval was also given to appoint international tennis player Sri Saketh Sai Myneni as a Deputy Collector (Group-I Services) under the sports quota. This includes an exemption from Rule 5 of the AP Civil Services (Executive Branch) Rules, 1992.

Myneni’s accolades include a gold and silver medal at the 2014 Asian Games, two golds and two silvers in later editions, 15 international Challenger titles, 28 Futures titles, and the Arjuna Award in 2017.

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Land allocations for development projects

Approval was given to transfer 0.2650 acres in Gandigundam village, Anandapuram, to M/s VEN Projects & Developers for ₹62,93,750. The land will be used to construct a culvert and road, which will be handed over to the local body.

The cabinet approved the transfer of 12.70 acres in S V Puram to the Andhra Pradesh Tourism Authority, free of cost, for tourism infrastructure projects.

Approval was granted to transfer 5.04 acres in Nelaturu village to Sembcorp Energy India Limited for ₹1,13,40,000 for power project development.

1.70 acres in Gudem village will be transferred to GAIL India Limited for ₹1,10,44,808 for constructing a pipeline receiving terminal.

The cabinet approved the transfer of 50 acres in Diguvapatnam, YSR Kadapa district, to the Andhra Pradesh Tourism Authority for developing an Oberoi Villas resort at Gandikota.

Irrigation and infrastructure sanctions

The cabinet sanctioned ₹95.90 lakh for three emergency repairs under the TBP HLC system. These include tunnel restoration (₹60.80 lakh), canal breach repair (₹13.50 lakh), and protective measures (₹21.60 lakh), to benefit farmers in Anantapur and Kadapa.

A revised administrative sanction of ₹350 crore was approved for two projects under the Sir Arthur Cotton Barrage and NSRS Srisailam Project.

The cabinet also approved ₹5355 lakh for repairing or reconstructing 17 check dams on the Palar River in Chittoor, and ratified ₹1024.50 lakh for four check dams – aimed at supporting farmers in drought-prone areas.

₹1052.67 crore was approved for developing basic infrastructure in the government complex area of Amaravati – covering roads, drains, water supply, sewerage, utility ducts, recycled water pipelines, and avenue plantations.

₹682.99 crore was cleared for Package XXXXV, which includes expansion of the E3 road (Phase-III) into a six-lane elevated corridor with bridges, underpasses, and utilities connecting to NH-16.

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Energy and renewable projects

The cabinet approved the expansion of capacity for the Gandikota Pumped Storage Project by M/s Adani Renewable Energy Fifty One Limited, from 1000 MW to 1800 MW.

An 83 MW wind-solar hybrid power project in Maddelacheruvu, Sri Sathya Sai district, was approved for allocation to M/s Berry Alloys Limited.

Capacity expansions were also approved for:

  • Pedakota Pumped Storage Project: from 1000 MW to 1800 MW by M/s Adani Hydro Energy Four Limited.
  • Raivada Pumped Storage Project: from 600 MW to 900 MW by M/s Adani Hydro Energy One Limited.

Tourism and cultural promotion

The cabinet approved the transfer of Dr B R Ambedkar Swaraj Maidan in Vijayawada to the AP Cultural Affairs Department to host regular cultural programmes, with a view to revitalising the city’s cultural scene.

The cabinet also cleared the Andhra Pradesh Registration, Renewal, and Operational Guidelines for Adventure Tourism, 2025.

The guidelines are aimed at promoting water sports, trekking, paragliding, and rafting – capitalising on the state’s diverse landscapes – while creating employment for rural communities, women, and youth, with a focus on safety and sustainability.

The cabinet approved incentives for:

  • M/s Green Park Hotels & Resorts Limited to set up a 4-star luxury hotel in Amaravati, creating 250 jobs, as per the State Investment Promotion Board (SIPB) meeting on 19 June 2025.
  • M/s Meglon Leisures and Entertainment LLP for a 5-star luxury resort in Polavaram, creating 350 jobs.
  • M/s Pavani Hotels to develop a 5-star hotel in Tirupati, expected to generate 300 jobs.

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IT and industrial incentives

The cabinet approved the allocation of 22.19 acres in Madhurawada, Visakhapatnam, to M/s Cognizant Technology Solutions India Pvt Ltd at a nominal rate of ₹0.99 per acre. The ₹1582.98 crore investment is projected to create 8,000 jobs under the AP IT & GCC Policy (4.0) 2024–25.

Additional concessions were approved for M/s ArcelorMittal Nippon Steel India Ltd, M/s Kalyani Strategic Systems Ltd, M/s Bharat Petroleum Corporation Ltd, and M/s LG Electronics India Ltd, ratifying GOMs No.99 dated 20 June 2025.

Agricultural relief

To stabilise the market and support farmers, the cabinet approved the procurement of 20 million kg of HD BRG tobacco at ₹120 per kg, amounting to ₹273.17 crore, including ₹100 crore as an upfront payment.

A project manager, two assistant managers, and buyers from the private sector will be appointed to oversee operations.

The cabinet also cleared a proposal advising farmers to take a crop holiday for tobacco in the upcoming year, as the procured stock would meet the following year’s demand.

(Edited by Dese Gowda)

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