Andhra Pradesh is gearing up for a major economic reboot. The State Cabinet, led by Chief Minister N. Chandrababu Naidu, has approved investment proposals worth nearly Rs. 1 lakh crore across multiple sectors, from quantum computing and renewable energy to infrastructure, agriculture, and manufacturing, setting the stage for a new phase of growth and innovation.
The decisions were finalized during a Cabinet meeting that covered 70 agenda items and signalled a clear intent to position Andhra Pradesh as a technology-driven, business-friendly state. Information and Public Relations Minister Kolusu Parthasarathi said the approvals reflect the government’s focus on creating long-term employment and promoting sustainable development.
Andhra Pradesh bets big on Quantum
Among the headline announcements is the approval of the AP Quantum Computing Policy 2025–30, which aims to establish the state as India’s hub for quantum research and innovation. The policy is expected to attract $1 billion (around Rs. 8,000 crore) in investments and create an ecosystem of over 5,000 experts, start-ups, and researchers in the coming years.
At the heart of this mission will be the Amaravati Quantum Computing Centre (AQCC), being developed under the ‘Quantum Valley’ initiative. Backed by partnerships with IBM and Tata Consultancy Services, the AQCC will house what is slated to be India’s largest quantum computer, a 133-qubit system, by January 2026.
The Rs. 99.62 crore project will sit on a 50-acre campus in Amaravati and include a state-of-the-art Quantum Reference Lab worth Rs. 40 crore. To encourage innovation, the government has committed to offering 365 hours of free computing access annually for start-ups and academic institutions.
Infrastructure expansion gains momentum
The Cabinet also cleared major infrastructure projects, reinforcing the administration’s focus on improving urban resilience and connectivity. A Rs. 595 crore flood pumping station at Undavalli in Amaravati has been approved, supported by the World Bank and the Asian Development Bank.
Additionally, Rs. 1,863 crore has been sanctioned for developing trunk infrastructure in land pooling zones, roads, drainage, and utilities which are critical for urban expansion. Financing support worth Rs. 7,500 crore from NaBFID and Rs. 1,500 crore from APPFCL will go toward city development, while large tracts of land will be allocated for housing under PMAY-U 2.0 (NTR Nagar) in districts like Sri Sathya Sai and Chittoor.
Industry and clean energy get a push
Andhra Pradesh’s manufacturing and industrial sectors are also poised for growth. Among the most prominent approvals is a Rs. 2,200 crore project by Visakha Realty Ltd to develop a massive IT park in Visakhapatnam. The project, planned in three phases, is expected to generate close to 30,000 jobs, transforming the coastal city into a digital and business hub.
Another major investment comes from Raheja Corp Real Estate, which will develop a 27-acre integrated IT park and residential complex in Visakhapatnam. The Rs. 2,172 crore project is projected to employ nearly 9,700 people and further strengthen the city’s status as one of India’s emerging technology corridors.
The state has also attracted high-value proposals in advanced manufacturing. Indichip Semiconductors has announced plans to set up a Rs. 23,000 crore facility at the Orvakal Node Industrial Hub in Kurnool to produce silicon carbide devices, critical components used in electric vehicles and power electronics. The project aligns with India’s semiconductor self-reliance mission and is expected to anchor a new ecosystem of chip-related industries in the region.
Beyond technology, the cabinet decisions highlight a broad-based development strategy. Major industrial projects are planned across Kapuluppada, Tirupati, Orvakal, and Nellore, spanning sectors from construction materials to drone technology. Orvakal, in particular, will become home to a 50-acre drone manufacturing hub, positioning Andhra Pradesh as a leader in India’s growing unmanned aerial systems industry.
In Nellore, the Birla Group will set up a fiber cement plant, while Sigachi Industrial Limited will develop a synthetic organic chemical plant on 100 acres in Orvakal. Dosco India Limited is establishing operations over 150 acres in Anakapalli, and Krishna district will see the rise of Veda Innovation Park, spread across 40 acres, to support startups and emerging technology firms. Together, these projects represent a strong step toward diversifying the state’s industrial base.
Green energy remains another key pillar of the state’s economic revival. Under the Andhra Pradesh Integrated Clean Energy Policy 2024, the government has approved the development of a 1,000-acre Renewable Manufacturing Zone in Bapatla. The zone will host manufacturers of solar modules, batteries, and related technologies, strengthening the state’s clean energy supply chain.
The cabinet also cleared several large-scale energy projects, including a 250 MW solar plant and the expansion of the Chittamvalasa Pumped Storage Project from 1,000 MW to 1,800 MW. These initiatives, coupled with private clean energy investments worth nearly Rs. 8,000 crore, underscore Andhra Pradesh’s intent to become a national hub for sustainable power generation.
Support for farmers and rural growth
Agriculture, long the backbone of Andhra Pradesh’s economy has received significant attention. The Cabinet approved land leasing for a mega handloom cluster in Dharmavaram and a Rs. 5,000 crore loan for paddy procurement.
Under the Annadata Sukhibhava-PM Kisan program, farmers will receive an annual income support of Rs. 20,000, combining Rs. 6,000 from the central government’s PM-KISAN scheme with additional state support. Civil supplies guarantees have also been raised to Rs. 44,000 crore for Kharif procurement under the National Food Security Act (NFSA) 2013.
Reforms and modern governance
On the administrative front, the Cabinet approved 19 new GST posts, land allotments for political parties, and clearances for several civic and energy projects, including an ESI dispensary, a biogas plant, and a Battery Energy Storage System (BESS) initiative.
Other key decisions include revising contractor norms in the water resources department, extending land leases for political parties, and amending the Assigned Lands Act to streamline governance.
The state also greenlit tourism incentives for new adventure parks, awarded TCS the RTGS Data Lake project worth Rs. 180.99 crore, and approved measures supporting airport development, prisoner remission policies, and a Memorandum of Understanding with Singapore for knowledge exchange.
