{"id":251,"date":"2026-05-23T06:45:09","date_gmt":"2026-05-23T06:45:09","guid":{"rendered":"https:\/\/voice.lapaas.com\/?p=251"},"modified":"2026-05-23T06:45:11","modified_gmt":"2026-05-23T06:45:11","slug":"ap-govt-offers-rs-19000-crore-incentives-to-reliance-data-centre","status":"publish","type":"post","link":"https:\/\/voice.lapaas.com\/?p=251","title":{"rendered":"AP Govt offers Rs 19,000 crore incentives to Reliance Data Centre"},"content":{"rendered":"\n

Andhra Pradesh government has officially cleared a massive, customized incentive package worth \u20b919,100 crore<\/strong> for Reliance Industries Limited (RIL)<\/strong>.<\/p>\n\n\n\n

The incentives are aimed at securing a staggering \u20b91,08,010 crore ($13 billion) cumulative investment<\/strong> from Reliance to build a giga-scale Artificial Intelligence Data Centre (AIDC) and a strategic Cable Landing Station (CLS)<\/strong> in the Vizianagaram district.<\/p>\n\n\n\n

Issued under the state’s Data Centre Policy 4.0 (2024\u201329)<\/em>, this marks one of the largest digital infrastructure bets in Indian history, aimed at turning the Visakhapatnam and north coastal belt into a high-speed international digital gateway.<\/p>\n\n\n\n

1. Land Allotment and Strategic Location<\/h3>\n\n\n\n

The state has cleared a massive land package to host the heavy-duty compute infrastructure, positioning it near developing coastal infrastructure:<\/p>\n\n\n\n

    \n
  • The Acreage:<\/strong> A total of 854.97 acres<\/strong> has been approved for allotment across the Polipalli, Bhogapuram West, and Bhogapuram East villages in Vizianagaram.<\/li>\n\n\n\n
  • The Land Discount:<\/strong> The land is being handed over via the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) at a 25% discount<\/strong> on market value. Reliance will pay the remaining 75% as the acquisition process rolls out.<\/li>\n\n\n\n
  • The Cable Moat:<\/strong> An additional isolated acre is explicitly earmarked for the Cable Landing Station, which will directly loop Andhra Pradesh’s local servers into undersea global internet traffic networks.<\/li>\n<\/ul>\n\n\n\n

    2. Slicing Open the \u20b919,100 Crore Subsidy Ledger<\/h3>\n\n\n\n

    To offset the massive capital expenditure required to establish cutting-edge AI clusters, the state government has structured long-term fiscal exemptions and subsidies spanning the next 10 to 20 years:<\/p>\n\n\n\n

    Incentive Category<\/strong><\/td>Financial Subsidy \/ Exemption Terms<\/strong><\/td>Hard Ceiling Cap<\/strong><\/td><\/tr><\/thead>
    Power Infrastructure Exemption<\/strong><\/td>100% exemption on state transmission and wheeling charges for 20 years.<\/td>\u20b95,000 Crore<\/strong><\/td><\/tr>
    Machinery Capital Subsidy<\/strong><\/td>6% capital subsidy on core computing machinery & equipment, paid in 10 installments.<\/td>\u20b94,500 Crore<\/strong><\/td><\/tr>
    Power Tariff Subsidy<\/strong><\/td>Flat discount of \u20b91 per unit<\/strong> on electricity consumption for 15 years.<\/td>\u20b93,114.18 Crore<\/strong><\/td><\/tr>
    Construction SGST<\/strong><\/td>100% reimbursement of Net SGST accrued during construction (valid for 10 years).<\/td>\u20b92,527.38 Crore<\/strong><\/td><\/tr>
    Leasing Cost SGST<\/strong><\/td>100% reimbursement of Net SGST accrued on server\/infrastructure leasing for 10 years.<\/td>\u20b91,800 Crore<\/strong><\/td><\/tr>
    Fiber Access Discount<\/strong><\/td>30% discount on Optical Ground Wire (OPGW) fiber access charges for 20 years.<\/td>\u20b91,220.71 Crore<\/strong><\/td><\/tr>
    Water Tariff Subsidy<\/strong><\/td>15% discount on industrial water tariffs for a period of 10 years.<\/td>\u20b9552.41 Crore<\/strong><\/td><\/tr>
    Right of Way (RoW) & Duty<\/strong><\/td>Complete waiver of state RoW fees (20 yrs) + 100% electricity duty exemption (15 yrs).<\/td>\u20b9386.85 Crore<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    3. Non-Fiscal Infrastructure and Utilities<\/h3>\n\n\n\n

    Because hyperscale AI data centers draw massive amounts of power and cooling resources, the state has built unique utility guarantees into the bilateral agreement:<\/p>\n\n\n\n

      \n
    • The Captive Solar Moat:<\/strong> To keep the facility green, the Energy Department has granted a 20-year cross-subsidy surcharge exemption<\/strong> for Reliance’s dedicated captive solar parks, allowing them to wheel clean power directly to the data center without incurring standard grid penalties.<\/li>\n\n\n\n
    • Water Supply & Desalination:<\/strong> The state has legally guaranteed an uninterrupted water supply line to the site for 20 years. Furthermore, APIIC has been directed to draw up plans to co-develop and co-own a dedicated desalination plant<\/strong> alongside Reliance to meet the center\u2019s massive cooling workflows without draining local water tables.<\/li>\n\n\n\n
    • Single-Window Governance:<\/strong> To bypass bureaucratic red tape, the project has been granted top-priority single-window clearance, overseen by an empowered state steering committee to monitor phase-wise milestone deployment.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

      Andhra Pradesh government has officially cleared a massive, customized incentive package worth \u20b919,100 crore for Reliance Industries Limited (RIL). The incentives are aimed at securing a staggering \u20b91,08,010 crore ($13 billion) cumulative investment from Reliance to build a giga-scale Artificial Intelligence Data Centre (AIDC) and a strategic Cable Landing Station (CLS) in the Vizianagaram district. […]<\/p>\n","protected":false},"author":2,"featured_media":252,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-251","post","type-post","status-publish","format-standard","has-post-thumbnail","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/voice.lapaas.com\/index.php?rest_route=\/wp\/v2\/posts\/251","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/voice.lapaas.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/voice.lapaas.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/voice.lapaas.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/voice.lapaas.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=251"}],"version-history":[{"count":1,"href":"https:\/\/voice.lapaas.com\/index.php?rest_route=\/wp\/v2\/posts\/251\/revisions"}],"predecessor-version":[{"id":253,"href":"https:\/\/voice.lapaas.com\/index.php?rest_route=\/wp\/v2\/posts\/251\/revisions\/253"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/voice.lapaas.com\/index.php?rest_route=\/wp\/v2\/media\/252"}],"wp:attachment":[{"href":"https:\/\/voice.lapaas.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=251"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/voice.lapaas.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=251"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/voice.lapaas.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=251"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}