The 17th State Investment Promotion Board (SIPB) meeting, chaired by Chief Minister N. Chandrababu Naidu, has cleared 25 major investment proposals totaling ₹2,01,023 crore. These projects are projected to generate 39,067 jobs, signaling a massive expansion in the state’s industrial and digital infrastructure. Chief Minister Naidu issued a strict directive for the “time-bound grounding” of these projects, mandating that all regulatory clearances be processed within a 21-day window via the Single Desk Portal. Emphasizing a “distinct brand” for Andhra Pradesh, the CM highlighted a governance model of efficiency intended to outpace global competitors, while also announcing a mandate for gas pipeline infrastructure across all industrial clusters and the integration of the “One Family-One Entrepreneur” initiative to bolster the MSME sector.
Reliance Industries Limited: Giga Scale AI Data Centre and Infrastructure
The SIPB approved a landmark investment from Reliance Industries Limited (RIL) for the Vizianagaram district, representing a cumulative commitment of ₹1,08,010 crore. The project focuses on establishing a Giga Scale AI Data Centre (AIDC) and a dedicated Cable Landing Station (CLS), with an ultimate expansion target of 2,000 MW of compute capacity for AI training and inference.
Infrastructure Context and Strategic Significance
The project is strategically situated near the upcoming Bhogapuram international airport and benefits from existing port connectivity, optimizing logistical and data transmission speeds. The Cable Landing Station is a critical component that acts as a “digital gateway,” directly connecting Andhra Pradesh to global internet and data traffic networks.
Land Allotment
The board sanctioned the allotment of 854.97 acres of land across Polipalli, Bhogapuram West, and Bhogapuram East. This includes 853.97 acres dedicated to the AIDC and a specific one-acre parcel for the Cable Landing Station. RIL was granted a 25% discount on the land value as part of the customized incentive framework.
Fiscal Incentives Package
A customized package of fiscal benefits totaling approximately ₹19,100 crore was approved. Key incentives include:
- Capital Subsidy: 6% on machinery and equipment, capped at ₹4,500 crore, disbursed over 10 installments.
- Power Tariff Discount: ₹1 per unit for 15 years, with a financial ceiling of ₹3,114.18 crore.
- Transmission & Wheeling: 100% exemption on charges for 20 years, capped at ₹5,000 crore.
- OPGW Fiber Access: 30% discount on access costs for 20 years, capped at ₹1,220.71 crore.
- Water Tariff Subsidy: 15% subsidy for 10 years, capped at ₹552.41 crore.
- Electricity Duty Exemption: 100% exemption for 15 years, capped at ₹186.85 crore.
- SGST Reimbursement: 100% reimbursement on construction Net SGST (capped at ₹2,527.38 crore) and leasing costs (capped at ₹1,800 crore) for 10 years.
- Statutory Waivers: 100% exemption on stamp duty, registration charges, and RoW fees (capped at ₹200 crore).
Employment
The Vizianagaram AI and data infrastructure facility is expected to generate 1,000 direct jobs.
Adani Group: Gandikota-2 Pumped Storage Project
The SIPB cleared the 2,250 MW Gandikota-2 Pumped Storage Project (PSP), to be developed by Adani Hydro Energy Eleven.
- Project Location: Lord Balaji Donthi Kona PSP Park in YSR Kadapa district.
- Investment & Mandate: An investment of ₹12,297 crore with a mandatory completion timeline of 72 months.
- Water Resource Allocation: The government sanctioned 29.20 million cubic metres (MCM) for initial filling from the Gandikota reservoir, with an additional 2.20 MCM allocated annually to cover evaporation losses.
- Employment Generation: The project is expected to create 3,375 jobs, supporting the state’s transition to a renewable-heavy power system.
Strategic Policy Framework
These approvals are anchored in a modernized regulatory framework designed to attract high-tech and sustainable industrial capital.
| Policy Name | Core Objective |
| Andhra Pradesh Integrated Clean Energy Policy 2024 | Attract ₹10 trillion in clean energy investments and generate 7.5 lakh jobs. |
| Andhra Pradesh Data Center Policy 4.0 (2024–29) | Establish the state as a leading AI hub through specialized fiscal support and digital infrastructure corridors. |
Additional Industrial and Energy Clearances
The session finalized several other high-value manufacturing and energy projects to complete the state’s industrial roadmap:
- Reliance Industries (Sri Sathya Sai): Large-scale solar power and battery energy storage project; investment of ₹51,300 crore, creating 20,000 jobs.
- Apollo Tyres (Sri City): Facility expansion in Tirupati district with an investment of ₹6,100 crore.
- International Flavours & Fragrances (Nellore): New industrial proposal with a committed investment of ₹3,153 crore.
- Gridon Energy Limited (Kurnool): Renewable energy infrastructure investment of ₹3,149 crore.
- Royal Enfield (Tirupati): Motorcycle manufacturing facility; investment of ₹2,508 crore, projected to generate 3,000 jobs.
- Bio-Energy & Hydrogen: Multiple units for green hydrogen and compressed biogas cleared in Eluru, East Godavari, Palnadu, and NTR districts.
- Quantum Technology: Approval for the Amaravati Quantum Valley initiative led by DRDO’s Naval Science and Technological Laboratory (NSTL).
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