Cabinet approves SIPB proposalsFocuses on promoting SC, ST, BC & Minorities in industrial sector

The Andhra Pradesh State Cabinet, chaired by Chief Minister N. Chandrababu Naidu, took several important decisions on Wednesday, approving the recent recommendations made by the State Investment Promotion Board (SIPB).
Addressing the media, Minister for Information and Public Relations, Kolusu Parthasarathy, highlighted that the Cabinet has decided to focus on encouraging people from BC (Backward Classes), SC (Scheduled Castes), ST (Scheduled Tribes), and Minority communities in the industrial sector.
The Cabinet also approved various incentives for these groups, as well as for women entrepreneurs. In a bid to further encourage their participation, subsidies for these communities will be increased, with a special focus on BC, SC, ST, and differently-abled entrepreneurs. The 35% investment subsidy has been raised to 45% to facilitate greater industrial participation.
Parthasarathy emphasised that the State is witnessing a surge in investments, particularly after the Telugu Desam-led NDA government assumed power.
He noted that corporate tycoons are eager to enter into agreements with the state. To date, 34 Memoranda of Understanding (MoUs) have been signed for projects valued at Rs. 6,78,345 crore, which are expected to generate 4,28,705 jobs.
The Cabinet also approved amendments to several key policies for the period 2024-29, including the Andhra Pradesh MSME & Entrepreneurship Development Policy (MEDP), the Andhra Pradesh Food Processing Policy (FPP), the Andhra Pradesh Sustainable Electric Mobility Policy, and the Andhra Pradesh Textile, Apparel & Garments (TAG) Policy.
In a major policy change, the Cabinet decided to extend the 45% subsidy, up to a maximum of Rs. 75 lakh, to transportation and logistics activities, a move that was previously limited to manufacturing activities. Besides, the subsidy for SC and ST industrialists for land value has been increased from 50% to 75%, with a cap of Rs 25 lakh.
The Cabinet also approved an enhanced electricity subsidy, where all categories, including women, SC, ST, BC, minorities, and differently-abled individuals, will receive Rs. 1.50 per unit for five years, up from the previous Rs. 1 per unit. Further, State GST reimbursement incentives will now be available to all categories for five years.
Another notable decision was the approval of amendments to the AP Land Rights and Pattadar Passbooks Act-1971, along with a move to withdraw disciplinary action against 386 engineers involved in implementing the Neeru-Chettu programme from 2014 to 2019. Bills worth Rs. 50.56 crore, which had been pending payment, will also be cleared.
The Cabinet approved the invitation of fresh tenders for the remaining works in the relief and rehabilitation housing colonies under the Polavaram project. Along with the construction of new houses, necessary basic amenities will also be provided in these colonies.
Additionally, the Cabinet approved the draft of the Andhra Pradesh Knowledge Capacity Building Policy-2025 and the proposals put forward by the Energy Department regarding green energy initiatives.