AP Cabinet Clears Key Reforms, Pushes Amaravati Legal Status

Steering the state’s development agenda, the 1383rd Cabinet meeting (46th under the present government), chaired by Chief Minister N. Chandrababu Naidu on Thursday, approved several key decisions. Marking a push for transformative changes in administration, legal, and welfare sectors, Information and Public Relations Minister Kolusu Parthasarathy briefed the media on the decisions, stating that the meeting aligned with public aspirations and prioritised the state’s interests.

A key step was taken towards granting legal status to Amaravati as the official capital . Following the state’s bifurcation, the capital issue has remained contentious. The government believes that support from the Centre is essential and plans to move a resolution in the Legislative Assembly seeking an amendment to Section 5 of the Andhra Pradesh Reorganisation Act, 2014 . The section designates Hyderabad as the common capital for both states for ten years. With this period now over, the state aims to secure clarity on its own capital.

The resolution is likely to be introduced and passed in today’s Assembly session, after which it will be formally sent to the Centre requesting legislative action.

In a major move to strengthen the judiciary, the Cabinet approved the establishment of 96 new courts across the state, following proposals from the High Court. To support this expansion, 1,730 new posts will be created. The decision aims to expedite the disposal of around 8.9 lakh pending cases , ensuring quicker access to justice for citizens.

The Cabinet also extended support to displaced families of the Polavaram Project , increasing compensation for land losers to Rs 4.2 lakh per acre . This will impose an additional burden of about Rs 565 crore , but the government emphasised prioritising rehabilitation. Further, Rs 606 crore was allocated for Handri–Neeva works and Rs 169.8 crore for modernisation of the Punganur branch canal to boost irrigation.

In a step towards social justice , the Cabinet decided to reserve 15 per cent of quarry leases for the Vaddera community under the Minor Mineral Policy-2025. Additionally, a 50 per cent concession in premium and seigniorage fees will be provided, aimed at improving their livelihoods.

Addressing concerns in the education sector, the Cabinet approved the draft of the ‘AP Coaching Institutions Regulation and Control Rules-2026’ to curb irregularities in private coaching centres and safeguard students’ mental health. Measures were also taken to improve academic standards, including additional staffing for a BC girls’ residential school in Kuppam.

Providing economic relief, the government announced a 50 per cent waiver on interest for pending property tax dues until March 31, 2026. Subsidies similar to the ‘Deepam-2’ scheme will be extended to domestic users of piped natural gas (PNG). In the energy sector, deadlines for renewable energy projects were extended by two years, while power charges in the Amaravati region were reduced from 15 per cent to 2.5 per cent .