The Andhra Pradesh Cabinet, headed by Chief Minister N Chandrababu Naidu, on Tuesday approved a reduction in the quarterly motor vehicle tax for private passenger buses plying on All India Tourist (AIT) permits.
Information and Public Relations Minister K Parthasarathy told reporters after the Cabinet meeting that the Cabinet decided to reduce the quarterly tax on vehicles that seat more than 12 passengers, excluding the driver, from $4000 per seat or berth $2500.
“The decision includes an amendment to Section 3 (1) of the Andhra Pradesh Motor Vehicles Tax Act, 1963,” he said.
The Council of Ministers also decided to raise the retirement age for permanent employees working in public sector institutions, institutions and associations from 60 years to 62 years. “The improvement will be implemented retrospectively from January 1, 2022. Employees who have retired after that date will be reinstated to their positions through appropriate amendments to the service rules,” the minister said.
The Cabinet approved the construction of the Andhra Pradesh Judicial Academy building at Pitchokapalem village in Amaravati. The project, which includes a two-year defect liability period, will be awarded to the L-1 bidder who submitted a bid $130.38 crores, which is 3.89% more than the estimated cost.
The Cabinet decided to terminate the agreement signed with Amaravati Refrigeration Company Private Limited to develop the cooling system in the government complex area of the capital. As part of the final settlement of all claims, disputes and disagreements between the Andhra Pradesh Capital Region Development Authority (APCRDA) and the concessionaire, the Cabinet has approved the payment of an amount of Rs. $8.11 crores to the company.
Moreover, the Cabinet cleared major infrastructure works in Land Pooling Scheme (LPS) schemes at Undavalli village in Amaravati-11 district. The project is worth $ Rs 426.46 crore was awarded to the lowest bidder who offered 4.07% above the estimated cost $409.78 Crores.
The Cabinet approved draft policy guidelines for setting up modern bars and retail liquor outlets at all international and domestic airports in Andhra Pradesh, except Tirupati Airport. The move aims to provide world-class amenities to passengers and enhance commercial services at airports across the state.
In order to enhance the quality of higher education and encourage eligible institutions to obtain Brownfield University status, the Cabinet approved an ordinance seeking to relax accreditation requirements for Brownfield universities and harmonize state legislation with the University Grants Commission Institutions Deemed to be Universities (Amendment) Regulations, 2026.
The Council of Ministers approved two supplementary agreements worth: $Kurnool Chief Engineer has sanctioned Rs 768.07 crore in connection with upgrading the canal system connected to Pothireddypadu Head Regulator and Banakacherla Cross Regulator Complex in the forecourt of Srisailam Reservoir.
The Council of Ministers also approved an administrative penalty for assessing the value of the revised project $1,478.41 crore, stating that the decision will not impose any additional financial burden on the state exchequer.
The Cabinet also approved a one-time option allowing employees eligible under the Contributory Pension Scheme (CPS) to switch to the Old Pension Scheme (OPS), Parthasarathy said.
“The benefit will be extended to employees whose employment notifications were issued before September 1, 2004, but who joined government service on or after that date. The decision follows the guidelines adopted by the central government.
According to the government, about 10,715 government employees and their families are expected to benefit from the move. “Eligible employees will receive service pensions and family pensions after retirement, with the average long-term benefit estimated at approx. $3.39 lakh crore per employee, he said, adding that the decision will cause a net financial burden of Rs 3.39 lakh per employee. $34,850.83 crores to the state between 2026 and 2067.
