AP Cabinet clears Rs. 2,387-cr chip project
Amaravati: In a sweeping set of decisions aimed at repositioning Andhra Pradesh as an investment-led growth hub, the state Cabinet chaired by Chief Minister N Chandrababu Naidu on Tuesday approved a broad package of industrial, energy and governance reforms spanning semiconductors, renewable power, tourism infrastructure and MSME revival.
At its meeting held at the Secretariat, the Cabinet cleared proposals spanning semiconductor manufacturing, renewable energy, AI-driven data centres, tourism infrastructure and MSME revival, while ratifying decisions taken by the State Investment Promotion Board (SIPB).
A key decision was the approval of a Rs 2,387.81-crore outsourced semiconductor assembly and test (OSAT) facility in Visakhapatnam district. The project, expected to generate around 1,000 directjobs, was cleared under the AP Semiconductor & Display Fab Policy 4.0 (2024–29), marking the state’s first semiconductor manufacturing initiative under India’s semiconductor mission framework. The Cabinet also approved proposals related to a 1,000 MW AI-focused data centre project by the Adani Group in Visakhapatnam, including land allotments across Visakhapatnam and Anakapalli districts.
Under the AP Integrated Clean Energy Policy 2024, multiple renewable energy projects received the green signal, including 160 MW wind projects in Anantapur district and wind-solar hybrid projects in Kurnool.
Compressed biogas plants and battery energy storage systems were also approved, reinforcing the state’s clean energy expansion plans. In the tourism sector, ultra-mega hospitality and convention centre projects were cleared in Amaravati, Visakhapatnam, Rajamahendravaram and Tirupati.
Incentives were extended to leading hospitality brands to strengthen tourism infrastructure and generate employment.
To support small enterprises, the Cabinet approved the AP Sick and Stressed MSME Revival Policy (4.0) 2026-31, aimed at reviving distressed units and promoting entrepreneurship under a “One Family, One Entrepreneur” model. Amendments to the AP Leather & Footwear Policy 2025-30 were also cleared.
On governance reforms, the government decided to reorganise Higher Education and Skill Development departments for better integration and establish a dedicated Science, Technology & Innovation Department. Administrative sanctions of Rs 424.34 crore and Rs 556 crore were approved for works related to the Assembly and High Court buildings in Amaravati.
Naidu emphasised faster project grounding and a shift from “Ease of Doing Business” to “Speed of Doing Business,” urging officials to adopt AI-driven tools to improve transparency and execution.
