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Andhra Pradesh's cabinet has approved a INR 7,387.70 crore loan from NABARD under the NIDA scheme to fund major infrastructure projects in Amaravati. The approval covers roads, drainage, water supply, flood pumping stations, and quantum computing centre buildings, alongside underground drainage projects in Mangalagiri Tadepalli. Additional measures include a 10% road safety cess, land allocations for educational and economic purposes, lease renewals, and interest waivers for beneficiaries under NSFDC and NSKFDC. These steps reflect the government's structured approach to accelerate development and strengthen urban infrastructure across the capital region.
The Andhra Pradesh cabinet has sanctioned a INR 7,387.70 crore soft loan from the National Bank for Agriculture and Rural Development (NABARD) under the NABARD Infrastructure Development Assistance (NIDA) scheme to expedite infrastructure projects in Amaravati. The approval follows a detailed review of proposals submitted by the state government in recent weeks. The loan is aimed at supporting essential urban development works and long term planning goals in the capital region.
Funding from the loan will be used to strengthen core city infrastructure, including roads, potable water systems, drainage networks, and sewerage. One of the highlighted projects is a flood pumping station at Undavalli, which includes construction, testing, commissioning, and a 15 year operation and maintenance period. These works are supported by multilateral partners such as the World Bank and Asian Development Bank.
The cabinet also cleared contracts for the Amaravati Quantum Computing Centre buildings, to be constructed by Larsen &Toubro, alongside comprehensive infrastructure packages for Zone 8 villages. These packages cover roads, drains, water supply, sewerage, power distribution, ICT networks, and reuse water lines, each with clearly defined defect liability periods to ensure long-term operational efficiency.
In urban policy measures, the government approved a 10 % road safety cess on motor vehicles subject to life tax, with proceeds expected to fund road maintenance and safety projects. A INR 1,673 crore underground drainage and sewage project for Mangalagiri Tadepalli under a hybrid annuity model was also approved to improve sanitation and drainage coverage.
Land-related decisions included exemptions from stamp duty and registration fees for over 2,400 beneficiaries under the Tirupati land pooling scheme. The cabinet approved land allocations for educational facilities in Nuzividu, Eluru district, and renewed land leases for drilling activities in Dr BR Ambedkar Konaseema district. Over 28 acres of land in Tirupati were allocated to the Sports Authority of Andhra Pradesh for a sports city. The state also approved a greenfield port and shipbuilding cluster at Duggarajupatnam and the acquisition of more than 418 acres for the Dagadarthi greenfield airport.
Financial relief measures included waiving over INR 41 crore in interest for more than 11,400 beneficiaries under the NSFDC and NSKFDC. Additionally, the cabinet approved prepaid smart metering across government departments to improve efficiency and support additional borrowing tied to the state's GSDP performance.
These combined decisions are part of a focused approach to accelerate the implementation of critical infrastructure projects while improving financial and administrative efficiency in Amaravati and surrounding areas.
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