Andhra Pradesh Government Allots 854.97 Acres for Reliance’s ₹1.08 Lakh Crore AI Data Centre

The Andhra Pradesh government has approved the allotment of 854.97 acres in Vizianagaram district to Reliance Industries Limited for a proposed artificial intelligence data centre and cable landing station project, as per the PTI reports.  

The project involves a planned investment of ₹1.08 lakh crore, according to a government order issued on Wednesday. The land identified for the project is located in Polipalli, Bhogapuram West and Bhogapuram East villages.  

The allotment has been approved at a 25% discounted rate through the Andhra Pradesh Industrial Infrastructure Corporation (APIIC). 

Government Approves Incentive Package 

Along with the land allotment, the state government cleared a set of fiscal and non-fiscal incentives for the project. Reliance will pay 75% of the land cost as the acquisition process progresses. 

The incentives include a full exemption on stamp duty and registration charges. The government has also approved a 6% capital subsidy on investment in machinery and equipment, capped at ₹4,500 crore. The subsidy will be released in 10 equal instalments. 

The government order also provides for 100% reimbursement of net SGST generated from construction activity for up to 10 years or until the project reaches full capacity.  

The reimbursement amount has been capped at ₹2,527.3 crore. A separate SGST reimbursement on leasing costs has been capped at ₹1,800 crore over the same period. 

Water and Power Provisions 

The state said water supply for the project would be facilitated for 20 years through APIIC and other departments. Reliance Industries will bear the cost of water supply. APIIC has also been asked to examine a proposal for setting up a desalination plant under joint ownership with the company. 

The government approved a 15% water tariff subsidy for 10 years, capped at ₹552.4 crore. It also cleared a power tariff subsidy of ₹1 per unit for 15 years with a ceiling of ₹3,114 crore. In addition, cross-subsidy surcharge exemption for captive solar infrastructure has been approved for 20 years. 

The government order stated that Reliance Industries submitted the proposal for the project on March 31. 

Read More: IRDAI May Raise Combined REIT and InvIT Investment Limit for Insurers to 6%: Reports! 

Conclusion  

The Andhra Pradesh government has cleared land allocation and incentive support for Reliance Industries’ proposed AI data centre project in Vizianagaram district. The project proposal was submitted on March 31. 

For daily market updates and regular stock market news in Hindi, stay tuned to Angel One's share market news in Hindi. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.