AP govt allots 855 acres to Reliance in Bhogapuram for AI data centre

Reliance will be given a 25 percent concession on the land value apart from other investment incentives as per existing norms. 

Andhra Pradesh Cabinet has on Thursday approved allotment of 855 acres of land to Reliance Industries for setting up Giga Scale AI Data Centre.

The land is located in the villages of Polipally, Bhogapuram East and Bhogapuram West in Visakhapatnam District near to the upcoming cable landing station and the International Airport. 

Reliance will be given a 25 percent concession on the land value apart from other investment incentives as per existing norms. 

The State Invest Promotion Board (SIPB) had earlier approved a proposal by Reliance to set up the Data Centre with an investment of ₹1.08 lakh crore which can create employment to 1000 and strengthen the digital infrastructure in the State.

The cabinet also ratified and approved land allotment to other investments cleared by SIPN including a motorcycle manufacturing facility of Royal Enfield in Tirupati district, an integrated cement plant with waste-heat based power generation plant Dachepalli in Palnadu district, Green filed enzyme manufacturing facility of International Food and Fragrance India, expansion of the tyre manufacturing facility of Apollo Tyres, an additional land allotment to Dallas Technology Center, annd Solar Cell Manufacturing facility of Gridon Energy, among others. 

The Cabinet had also approved establishment of a R&D facility of the Naval Science and Technological Laboratory in the Quantum Valley in Amaravati.

SME EXCHANGE

In order to improve access to the Micro, Small and Medium Enterprises (MEMEs) in the State, the Cabinet approved setting up Andhra Pradesh SME Exchange (APSMEX). A task force will be set up to work on the modalities including the regulatory approvals to clear the path for establishment of the exchange. 

The objective of the APSMEX is to provide a platform for MSMEs to mobilise equity capital and other alternative financial resources. The State has about 20 lakh registered MSMEs. 

AUSTERITY measures

In response to a call given by Prime Minister Narendra Modi, the cabinet decided to roll out austerity measures across the state including the reduction in the number of official vehicles in convoys of the Chief Minister and other ministers, adoption of a `No Vehicle Day’ refraining from official foreign travel.

The Chief Minister directed the officials to draw up an action plan on the modalities of work from home as suggested by the Prime Minister.

Published on May 14, 2026