Amaravati: The State Cabinet, which met under the chairmanship of Chief Minister Nara Chandrababu Naidu on Friday here, approved a series of welfare and development measures, including direct financial support to nearly 2.9 lakh auto and cab drivers, a new caravan tourism policy, major urban infrastructure projects under AMRUT 2.0, and key decisions on land pooling in Amaravati.

Briefing reporters after the Cabinet meeting, Minister Partha Saradhi said that nearly 2.9 lakh auto, motor cab, and maxi cab drivers would receive financial assistance of Rs 15,000 each. The scheme, estimated to cost Rs 436 crore, is intended to cushion the impact of the Stree Shakti free bus travel programme for women, which has so far benefited more than 10 crore women passengers. The driver support initiative will be launched statewide on October 4, with provisions for grievance redressal in case of exclusions.

The Cabinet also gave its nod to the Caravan Tourism Policy 2024–29, designed to promote temple and eco-tourism through caravan travel and park development.

The policy includes tax rebates on the first 50 caravans, with 100 per cent exemption on life tax for the first 25 vehicles and graded rebates for the rest. Developers of Caravan Parks will receive fiscal incentives such as stamp duty waivers, land conversion exemptions, reimbursements of quality certification fees, and a 25 per cent capital subsidy. In a related move, the government approved a new homestay policy, allowing a maximum of six rooms per unit.

On the urban infrastructure front, the Cabinet sanctioned 281 projects worth Rs 10,251 crore under AMRUT 2.0, focusing on water supply and sanitation. These works will be executed through a concessionary hybrid model, with modified tender norms to address concerns raised by contractors, including revised standard schedule of rates (SSR) and relaxed EMD conditions. Significant decisions were also taken on Amaravati land pooling. The Cabinet cleared the withdrawal of 343 acres from acquisition proceedings, covering parcels not previously surrendered under pooling. These lands may now either be acquired afresh if they obstruct projects or are voluntarily pooled by farmers. In addition, approvals were given for special purpose vehicles (SPVs) to take forward marquee Amaravati projects, including the proposed Greenfield airport, iconic bridge, sports city, ropeway systems, and riverfront development.

The Cabinet extended financial support to the Civil Supplies Corporation, sanctioning a Rs 1,000 crore loan through the NCDC to clear arrears to paddy farmers. It also announced additional incentives for cocoa, tobacco, and mango growers.

The Cabinet also cleared an amendment to the AP Assigned Lands Act, enabling leasing of such lands for renewable energy projects. It also approved some decisions which included a land transfer of 174 acres in Nandyal district to Greenko at a revised price of Rs 6.25 lakh per acre for renewable energy projects, policy changes to allow JSW Neo Energy to supply wind power directly to its Kurnool steel plant, and the formation of an advisory council on green hydrogen. Penalties for delays in green ammonia projects were waived.