The new funding package will support the construction of 76.02 km of water‑supply lines, 30.16 km of sewerage networks, 309.30 km of storm‑water drains, 69.68 km of roads and the installation of 2,597 streetlights throughout the capital’s gram panchayats.
An additional ₹644.98 crore was earmarked for works under the negotiated settlement policy, and the cabinet directed that execution shift from zone‑wise to package‑wise contracts, shortening the maintenance guarantee from seven years to a two‑year defect‑liability period and moving from EPC mode to lump‑sum contracts.
The cabinet also approved amendments to the APCRDA Land Pooling Rules, 2025, allowing minimum annual annuity payments to eligible farmers who contributed less than one acre of land, and ratified ₹5.04 crore in annuity for 1,304 farmers whose ownership was confirmed by 2 December 2025.
In a separate move, the earlier ₹798‑crore sanction for the Assembly building in Super Block ‘E’ was cancelled and replaced with a fresh ₹661 crore sanction on a design‑build, item‑rate (lump‑sum) basis.
Other approvals included the Group of Ministers’ recommendations on fresh and earlier land allotments in the CRDA region, authorisation for the CRDA commissioner to act under the Amaravati Land Allotment Rules, 2017, and the adoption of the Andhra Pradesh Common Land Pooling Scheme Rules, 2026, which excludes APCRDA.
The cabinet ratified SIPB recommendations, notably allocating three acres in Visakhapatnam to Muthoot Fincorp for a ₹100‑crore AI project expected to generate 2,400 jobs, and approved quantum‑technology projects under the state’s Quantum Computing Policy, as well as incentives for four‑ and five‑star hotel developments in Amaravati, Kadapa and Tirupati, raising the investment in a proposed twin‑hotel in Amaravati to ₹539 crore with an estimated 700 jobs.