The Andhra Pradesh Cabinet, led by Chief Minister N. Chandrababu Naidu, on Monday approved the creation of two new districts — Markapuram and Polavaram — raising the total number of districts in the state from 26 to 28. The reorganisation also involved modifications in 17 existing districts, encompassing 25 changes in total, while nine districts, including Vizianagaram, Visakhapatnam, Guntur, and Anantapur, remain unaffected.

Revenue Minister Anagani Satyaprasad briefed reporters after the Cabinet meeting at the state secretariat, explaining that the decision follows public objections and suggestions received after the November 27, 2025, gazette notification. The final notification will be issued soon, with the changes set to come into effect from December 31, 2025.

Details of New Districts

Polavaram district will have Rampachodavaram as its assembly constituency headquarters, with the village of Polavaram set to be developed as a revenue division in the future. Markapuram district will comprise the Markapuram, Kanigiri, Yerragondapalem, and Giddaluru blocks.

The Cabinet also deliberated on proposals for a separate Madanapalle district. While Rayachoti could not be designated as a district, Madanapalle will now serve as the headquarters of the Annamayya district, replacing Rayachoti.

NABARD Loan for Amaravati Infrastructure

In a significant financial decision, the Cabinet approved securing a ₹7,387.70-crore loan from the National Bank for Agriculture and Rural Development (NABARD) under the NABARD Infrastructure Development Assistance (NIDA) scheme. The loan will fund infrastructure projects in the Amaravati capital region and will carry a 5% guarantee fee.

Amaravati Capital City Development Projects

The Cabinet awarded contracts for major infrastructure projects in Amaravati. These include the construction, testing, commissioning, and 15-year operation and maintenance of Flood Pumping Station-2 at Undavalli, with a capacity of 8,400 cusecs. The project, funded by the World Bank and the Asian Development Bank (ADB), is valued at ₹443.76 crore.

Additionally, the Cabinet approved trunk infrastructure works in Zone-8 villages, covering Krishnayapalem, Venkatapalem, Penumaka, and Undavalli. These works include roads, drains, water supply, sewerage, power, ICT ducts, reuse water lines, sewage treatment plants (STPs), and avenue plantation. The project cost is ₹1,358 crore and carries a two-year defect liability period.

Employee Benefits and DA Revision

The Cabinet approved a 3.64% increase in dearness allowance (DA) for state employees and pensioners, effective January 1, 2024. This revision raises the DA from 33.67% to 37.31%, with monetary benefits applicable from October 2025 salaries.

Ordinances for Road Safety and Village Secretariat Nomenclature

Two ordinances were approved by the Cabinet. The first amends the Andhra Pradesh Village and Ward Secretariats Act, 2023, allowing changes in the nomenclature of village and ward secretariats.

The second ordinance introduces a 10% Road Safety Cess on motor vehicles liable for life-tax under the Andhra Pradesh Motor Vehicles Taxation Act, 1963. Proceeds from the cess will be transferred to the AP Road Development Corporation for road improvement, enhancing safety measures, and reducing accidents and fatalities. The government estimates that with approximately 73,000 new vehicle registrations monthly, the cess will generate ₹22.5 crore per month and ₹270 crore annually. Satyaprasad noted that the additional financial burden on vehicle owners would be minimal, especially after the Centre reduced GST on motor vehicles from 28% to 18%.

Conclusion

The Andhra Pradesh Cabinet’s decisions mark a significant restructuring of administrative boundaries and a push for large-scale infrastructure development in the Amaravati region. With new districts, major funding from NABARD, and enhanced road safety measures, the state government aims to improve governance, streamline infrastructure, and boost regional development. The reforms also emphasize public consultation, with changes implemented after receiving feedback from residents.