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Andhra Pradesh Ratifies ₹7,387-Crore Amaravati Loan, Imposes 10% Road Cess, Hikes DA

The decisions formalize funding to accelerate urban projects alongside welfare implementation.

Overview

  • The Cabinet approved a ₹7,387.70 crore NABARD NIDA loan for Amaravati infrastructure, authorizing APCRDA to secure it with a State guarantee and a 5% guarantee fee.
  • An ordinance introduced a 10% Road Safety Cess on motor vehicles subject to life tax, expected to raise about ₹270 crore a year for the Road Development Corporation’s improvement and safety works.
  • The government sanctioned a 3.64% increase in DA/DR for employees and pensioners, taking it to 37.31% effective January 1, 2024, with payments beginning in October 2025 salaries.
  • In its year-end review, the Cabinet cited 610 MoUs proposing ₹13.25 lakh crore of investment with over 16 lakh potential jobs and reported welfare outlays exceeding ₹50,000 crore.
  • Near-term actions include distributing 21.8 lakh ration cards by January 9, 2026, and advancing plans to develop Greater Vijayawada and Greater Tirupati.