Andhra Cabinet clears projects worth ₹1,27,181 crore; Google subsidiary to set up largest data centre in Vizag

Amaravati : Andhra Pradesh is set to house one of the largest data centers.

Google subsidiary Raiden Infotech Private Limited will set up the data centre in Visakhapatnam. The project is expected to play a pivotal role in transforming Visakhapatnam into an AI-powered smart city.

The decision was part of the cabinet decisions chaired by Chief Minister Nara Chandrababu Naidu at the Secretariat on Friday, which cleared projects worth ₹1,27,181 crore, which are expected to generate around 78,000 jobs across the state.

The proposed Raiden Data Center will be set up with an investment of ₹87,520 crore (fully equity-funded) on 480 acres in the Visakhapatnam district. It will be among three mega data centres planned in the region, coming up at Tarluvada, Adivivaram, and Achyutapuram.

Officials said the initiative marks a significant step in Andhra Pradesh’s digital infrastructure development and positions Visakhapatnam as a major technology hub in the country.

Several Investment Proposals :

Major investment proposals and administrative reforms aimed at strengthening the state’s industrial, digital, and rural infrastructure were cleared in the cabinet.

₹2,400 Crore Investment in Visakhapatnam Steel Plant :

The Cabinet approved an equity investment of ₹2,400 crore in Rashtriya Ispat Nigam Limited (RINL), including the clearance of electricity dues worth ₹53.29 crore to the Visakhapatnam Steel Plant. The Eastern Power Distribution Company Limited (EPDCL) has been permitted to convert this amount into non-cumulative redeemable preference shares after ten years.

The Minister clarified that this move is aimed at ensuring RINL remains in the public sector, countering misinformation about its privatization. He said that despite claims during the previous YSRCP regime about close ties with the Centre, no assurances were made to protect the steel plant from privatization.

Major Panchayat Reforms After 48 Years :

The Cabinet approved the restructuring and reclassification of gram panchayats across the state. A total of 1,244 panchayat clusters will be abolished, and 13,351 gram panchayats will now function as independent units.

Based on population and income, these will be categorized into Special Grade (Rurban), Grade-I, Grade-II, and Grade-III panchayats. The reform will open avenues for increased funding from central schemes and streamline local development. Panchayat Secretaries will henceforth be designated as Panchayat Development Officers.

Tribal Land Protection and Tourism Development :

The government reiterated that tribal lands will not be allotted to private individuals. Instead, the State plans to develop eco-tourism projects, hotels, and resorts on tribal lands through a 50:50 partnership model—ensuring that tribal communities retain ownership while benefiting from tourism revenue.

Minister Parthasarathy clarified that this is not yet a formal Cabinet proposal but an idea under consideration. He added that a tribal entrepreneur has already proposed setting up a resort on his 13-acre plot, and the Chief Minister has directed officials to extend full cooperation.

Amaravati to Get Four Mega Convention Centres and New Raj Bhavan :

To strengthen Amaravati’s identity as the permanent capital, the Cabinet approved the construction of a new Raj Bhavan at a cost of ₹212 crore within the Government Buildings Complex.

Additionally, the CRDA has received approval to build four convention centres, each spread over 6.5 acres with a capacity of 10,000 people, aimed at promoting large-scale conferences and events in the capital region.

Defence and Aerospace Investments :

The Cabinet cleared the Bharat Dynamics Limited (BDL) project in Donakonda, Prakasam district, with an investment of ₹1,200 crore on 1,200 acres. The project will generate 1,400 jobs, with production expected to begin by October 2028.

In Anantapur, two major aerospace and automotive component manufacturing units by Raymond JK Maini Precision Technology and Raymond JK Maini Global Aerospace Limited were approved, with a combined investment of ₹940 crore. Together, they are expected to create over 1,400 jobs and commence production by May 2027.

Expanding IT to Tier-2 Cities :

To boost IT investments beyond major urban centres, the Cabinet approved amendments to the State Land Incentive for Tech Hubs Policy, allowing land allotments of 0.5 to 4 acres to medium-sized IT enterprises in Tier-2 cities. Companies must begin construction within 12 months and create at least 500 jobs within two years.

Lulu Group Projects in Vijayawada and Visakhapatnam :

The Cabinet approved leasing 7.48 acres at Mallavalli Industrial Park, Vijayawada, to Lulu’s Fair Exports for 68 years at an annual rent of ₹50 lakh, with a 5% hike every five years, for the establishment of a Lulu Food Park.

It also cleared revised lease terms for Lulu International Shopping Malls Pvt. Ltd. to set up a mega shopping mall on Visakhapatnam Beach Road, spanning 13.74 acres at a lease of ₹1.08 crore per year, with a 10% increase every five years.

New Industrial and Technology Projects :

Accel ESG will establish an Innovation Centre in Krishnagiri, Kurnool district, with an investment of ₹30 crore on 8 acres, focusing on AI-based environmental monitoring systems, drones, and biochar production, creating 300 jobs.

The Oberoi Group has been allotted 20 acres in Tirupati (Survey No. 588/A) for the development of Oberoi Villas Resort, following the cancellation of an earlier allotment opposed by locals.

Imaginative Techno Solutions will set up an IT unit in Kapuluppada, Visakhapatnam, with an investment of ₹140 crore on 4.05 acres, generating 2,600 jobs and establishing new Global Capability Centers (GCCs).

Avanti Warehousing Services will invest ₹319 crore in Gurrampalem, Visakhapatnam district.

Shanveera Industries Limited will set up a unit in Anakapalle with an investment of ₹260 crore, creating 800 jobs.

Sri Cement will expand its Palnadu unit with an investment of ₹2,260 crore, providing 350 additional jobs.

A private mega industrial park will be developed on 1,166.43 acres in the Vizianagaram district, with an investment of ₹531 crore, expected to generate 45,000 employment opportunities.