Chief Minister N. Chandrababu Naidu chairing the Cabinet meeting at the Secretariat in Amaravati on Monday.
| Photo Credit: SPECIAL ARRANGEMENT
The Andhra Pradesh State Cabinet meeting, chaired by Chief Minister N. Chandrababu Naidu, approved a series of major policy decisions on Monday, covering infrastructure development, social welfare, administrative restructuring, and public service improvements across the State.
Among the key approvals were a ₹7,387.70 crore loan from the National Bank for Agriculture and Rural Development (NABARD) under the NIDA scheme for infrastructure projects in Amaravati, and the introduction of a 10% “Road Safety Cess” on motor vehicles subject to life tax.
Disclosing the details to the media, Revenue, Registration & Stamps Minister Anagani Satya Prasad, along with Ministers Nadendla Manohar and Satyakumar, said the Cabinet ratified government orders issued on December 11, 2025, under G.O. Ms. No. 269 by the Municipal Administration & Urban Development Department (MA&UD). These orders authorise the AP Capital Region Development Authority (APCRDA) Commissioner in Vijayawada to secure the NABARD loan. Subject to a 5% guarantee fee, the funds will be used for critical infrastructure development in Amaravati. Officials have been empowered to obtain State guarantees, execute the loan agreement, and complete all necessary documentation, a move expected to accelerate the city’s urban development plans.
The 10% Road Safety Cess, approved through an ordinance amending the AP Motor Vehicles Taxation Act, 1963, will generate approximately ₹22.5 crore per month, or ₹270 crore annually. The revenue will be allocated to the Andhra Pradesh Road Development Corporation for road improvement, safety measures, and accident prevention. With around 73,000 new vehicles registered monthly and the recent reduction of GST on motor vehicles from 28% to 18%, the cess is not expected to place a heavy financial burden on vehicle owners.
On the welfare front, the Cabinet approved a 3.64% increase in Dearness Allowance (DA) and Dearness Relief (DR) for State government employees and pensioners, effective from January 1, 2024. The hike raises DA/DR from 33.67 % to 37.31 %, with benefits beginning in October 2025 salaries, providing financial relief amid rising living costs.
The government also outlined plans to develop Greater Vijayawada and Greater Tirupati as major urban centres. Chief Minister Naidu highlighted that 21.8 lakh ration cards are being distributed by January 9, 2026, with errors corrected and outdated photos removed. He assured substantial development for Polavaram and personal oversight for Rayachoti’s growth.
Medical and Health Minister Satyakumar stated that despite financial challenges, the government is correcting past mismanagement and empowering women economically, with nearly ₹3 lakh crore invested in basic infrastructure and new road connectivity planned from Machilipatnam to Hyderabad’s Future City.
Civil Supplies Minister Nadendla Manohar added that unprecedented allocations, including up to ₹5,000 crore under the NTR Bharosa scheme, have been made for pensions and welfare programmes, reflecting strong government commitment to social security and inclusive development.
These decisions collectively highlight the State government’s focus on balanced regional growth, infrastructure modernisation, and citizen-centric governance across Andhra Pradesh, they said.
EOM
Published – December 29, 2025 08:35 pm IST
