Cabinet nod for `4,054-cr rural water push in state

Amaravati: The Andhra Pradesh Cabinet on Thursday cleared the revival of rural drinking water schemes at an estimated cost of Rs 4,053.85 crore, besides approving key Amaravati infrastructure projects, industrial development initiatives and renewable energy proposals.

Briefing reporters after the Cabinet meeting chaired by Chief Minister N Chandrababu Naidu, Information and Public Relations Minister Kolusu Parthasarathy said the government had accorded approval for reviving and reorganising thousands of pending rural water supply works under the Jal Jeevan Mission.

The Cabinet granted administrative sanction for the revival and rationalisation of 13,252 works at an estimated Rs 4,053.85 crore. Under the restructuring, 13,247 Single Village Scheme works will be rationalised into 7,439 schemes costing Rs 3,046.11 crore, while five Multi-Village Schemes costing Rs 1,007.74 crore will cover 334 villages.

The government also cancelled an earlier sanction for 2,943 works worth Rs 1,811.81 crore, a move aimed at reducing the financial burden while restructuring the projects for completion within the JJM 2.0 timeframe.

In a related decision, the Cabinet approved a revised accountability framework for rural water supply projects. Single Village Schemes will carry a two-year defect liability period (DLP), while multi-village and bulk water schemes will have a two-year DLP followed by a 10-year performance-based operation and maintenance period.

The Cabinet approved administrative sanction for the Rs 759.79-crore Amaravati Sangamam project at Sakamuru, comprising the Andhra Pradesh State Public Library, an auditorium and the Global Institute of Good Governance. It also cleared the proposed broad-gauge railway line from Errupalem to Namburu via Amaravati, along with the development of the Inner Ring Road and grid road extensions. The Cabinet further authorised fresh land pooling covering 6,212.50 acres, including land in Kantheru and Tadikonda areas, based on farmers’ requests. In another major decision, the Cabinet approved the use of flexible bituminous pavements instead of cement concrete for several categories of Land Pooling Scheme roads.

The Cabinet also cleared the Andhra Pradesh Poultry Development Policy, 2026-29, with proposed incentives of Rs 657.18 crore to modernise the sector, promote environment-controlled sheds, strengthen biosecurity, support processing and cold-chain facilities and expand export opportunities.

For the Polavaram Hydro-Electric Project, the Cabinet approved MEIL’s request to adopt the NHPC methodology for calculating price variation in electromechanical and hydro-mechanical works, allowing consideration of Rs 557.97 crore, including GST.

The government also approved Rs 94 crore for AP MARKFED to provide Rs 10 per kg as price deficiency support for 94 million kg of low and off-style tobacco procured during the 2026 season.

Industrial infrastructure received another boost, with multiple land transfers in Chittoor district approved for APIIC industrial and MSME parks, besides land for solar projects and other infrastructure. The Cabinet further approved procurement of 4,760 new police vehicles, addressing a growing shortage caused by the condemnation and ageing of thousands of existing vehicles. A Rs 324.20 crore SBI loan, backed by a government guarantee, will finance the procurement. Other decisions included upgrading the ESI Hospital at Rajamahendravaram from 50 to 100 beds.

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