Amaravati, December 29, 2025: The Andhra Pradesh Cabinet, chaired by Chief Minister N. Chandrababu Naidu, ratified a ₹7,387.70 crore soft loan from NABARD under the NIDA scheme to accelerate critical infrastructure in Amaravati. This follows earlier orders from December 11, with a 5% state guarantee fee attached.
The funds aim to strengthen roads, drainage, water supply, and other urban essentials in the capital region, aligning with ongoing efforts from multilateral partners like the World Bank and Asian Development Bank.
The Cabinet also introduced a 10% Road Safety Cess on motor vehicles subject to life tax via an ordinance amending the AP Motor Vehicles Taxation Act, 1963. Expected to raise ₹22.5 crore monthly (₹270 crore yearly), the revenue will fund road upgrades, safety initiatives, and accident prevention through the Andhra Pradesh Road Development Corporation.
Officials noted the cess adds minimal burden amid recent GST cuts on vehicles from 28% to 18%. Additionally, a 3.64% Dearness Allowance and Relief hike for government employees and pensioners was approved, raising the rate from 33.67% to 37.31% effective January 1, 2024, with arrears from October 2025 salaries.
