February 2026
In short: Andhra Pradesh economy & infrastructure current affairs for February 2026.
Current Affairs — Andhra Pradesh › Economy & Infrastructure · 14 min read · Free to read · English & Telugu
Bilingual study notes for the Andhra Pradesh Police SI & Constable exams (SLPRB AP) by AP Police Hub, a product of Anvil Academy.
February 2026's Andhra Pradesh economy digest — Veligonda, Paleru and Korisapadu prioritised for the 2026-27 Budget, zero excise duty on raw tobacco, four major ports under construction, the Gates Foundation partnership with Swarnandhra Vision-2047 targets, NTR district as a natural-farming model, and AP Tourism at SATTE 2026.
February 2026 — At a Glance
February 2026's economy news in Andhra Pradesh combined irrigation-led regional development, ports, farm incomes and a long-term growth partnership. At Prakasam district's 57th Formation Day, the Veligonda, Paleru and Korisapadu projects were promised top priority in the 2026-27 Budget. The Centre's zero excise duty on raw tobacco was welcomed as a relief to AP farmers, and Parliament was told that four major ports are under construction on the AP coast. The State signed a strategic partnership with the Gates Foundation tied to Swarnandhra Vision-2047, NTR district set out to become a model for natural farming, and AP Tourism opened its pavilion at SATTE 2026 in New Delhi.
1. Irrigation & Regional Development — Veligonda, Paleru, Korisapadu Top the 2026-27 Budget List
Prakasam district's 57th Formation Day sets the roadmap
- What — At the 57th Formation Day celebrations of Prakasam district at Ongole, State Social Welfare Minister Dola Sree Bala Veeranjaneya Swamy said major irrigation and infrastructure projects in the region will get top priority in the AP State Budget 2026-27.
- Tribute — The event also honoured "Andhra Kesari" Tanguturi Prakasam Pantulu, after whom the district is named.
- Four pillars — The administration signalled integrated development across Agriculture, Industries, Education and Infrastructure.
Key priorities for the AP Budget 2026-27 (Prakasam)| Project / measure | Detail |
|---|
| Veligonda Project (Poola Subbaiah) | Flagship project for drinking and irrigation water to parched tracts of Prakasam, Nellore and Kadapa districts |
| Paleru & Korisapadu Projects | To be fast-tracked in the next fiscal so that tail-end water reaches farmers |
| Roads | Four-laning of the road to Bestavaripeta |
| Rail | Central cooperation sought for pending railway projects in the district |
- Donakonda Industrial Hub — Targeted for new large-scale industries; Donakonda's vast land bank is positioned as a strategic site on the State's industrial corridor, to raise the district's Per Capita Income (PCI).
- Green energy — Compressed Bio-Gas (CBG) plants — renewable energy plus an extra income stream from rural waste.
- Tobacco farmers — Prakasam is a hub of FCV (Flue-Cured Virginia) tobacco; the State is in talks with the Centre on price volatility and regulatory hurdles.
- Big picture — The aim is to turn this drought-prone region (western Prakasam, bordering Rayalaseema) into a logistics and industrial hub between the capital region and the southern districts.
2. Agriculture & Taxation — Zero Excise Duty on Raw Tobacco Benefits AP Farmers
A Central tax clarification with a big AP impact
- What — The Central Government reduced the excise duty on unbranded/raw tobacco (not packed for retail) to zero per cent. It applies to items under tobacco HS code 2401 and took effect from 1 February 2026.
- Why — The law earlier did not clearly separate bulk/raw tobacco from branded products, causing classification disputes, higher costs and trade difficulties. Zero-rating unbranded tobacco removes multiple duty classifications.
- AP CM's view — CM Chandrababu Naidu said the decision directly benefits AP tobacco farmers, ensures better prices, and that clear duty rules should reduce excise evasion. AP urged strict, uniform implementation across India.
Zero duty on raw tobacco — at a glance| Point | Detail |
|---|
| Duty on unbranded/raw tobacco | 0% excise duty |
| HS code | 2401 |
| Effective from | 1 February 2026 |
| Keyword agency | Central Board of Indirect Taxes and Customs (CBIC) |
- Benefits — Policy clarity, higher market value for raw tobacco, a boost to domestic and export trade, and less tax evasion.
- Concerns — Tobacco harms health, so duty cuts may clash with public-health goals; possible revenue loss; zero duty must not feed illegal trade or diversion.
3. Ports — Four Major Ports under Construction in Andhra Pradesh
Centre informs Parliament about AP's port pipeline
- What — The Ministry of Ports, Shipping and Waterways informed Parliament that four major ports are under construction in Andhra Pradesh, to raise cargo capacity and support industrial growth on the eastern coast.
Ports under construction in AP| Port | Location (as given in the source) |
|---|
| Mulapeta Port (formerly Bhavanapadu) | Srikakulam district |
| Machilipatnam Port | Krishna district |
| Ramayapatnam Port | SPSR Nellore district |
| Kakinada SEZ Port | Kakinada region |
- Port modernisation — Mechanised berths and terminals, new berths, capital dredging for larger vessels, road-rail-waterway integration, digitalised processes, RFID-based gate automation and container scanners.
- Sagarmala — five pillars — 1) Port modernisation, 2) Port connectivity enhancement, 3) Port-led industrialisation, 4) Coastal community development, 5) Coastal shipping and inland water transport.
- Green & digital — Harit Sagar Guidelines (green ports), Green Tug Transition Programme (GTTP) (cleaner harbour tugs), Sagar Setu 2.0 (Maritime Single Window to cut vessel turnaround time) and the Cruise Bharat Mission.
- Challenges — Coastal ecosystems, land acquisition and rehabilitation, last-mile connectivity and cyclone risks.
4. Growth Partnership — Andhra Pradesh and the Gates Foundation
Technology, AI, health, education and agriculture for Swarnandhra Vision-2047
- What — Andhra Pradesh entered a strategic partnership with the Gates Foundation to speed up development through technology, AI, healthcare innovation, education reform and agricultural modernisation.
- Background — CM Naidu called Bill Gates' visit historic and recalled their 1997 interaction that led to Microsoft's Hyderabad presence.
- Swarnandhra Vision-2047 — The long-term roadmap to make AP a leading state by 2047.
Swarnandhra Vision-2047 — key targets| Indicator | Now → Target |
|---|
| Economy | 180 billion → 2.4 trillion |
| Per capita income | 3,400 → 42,000 |
| Unemployment | 4.1% → 2% |
| Women workforce participation | 45.8% → 80% |
| Literacy | 72% → 100% |
| Skilled workforce | 95% (target) |
| Life expectancy | 85 years (target) |
- Ten Cardinal Principles — Zero poverty; employment for all; skill development; water security; agri-technology adoption; world-class logistics; energy and fuel security; product quality improvement; Swachh Andhra; deep-tech development.
- Digital governance — Aadhaar-based verification, personal and family data lakes, AWARE (AP Wide Area Real-time Execution) monitoring, WhatsApp governance, DG Verify authentication. AI is used in 10 sectors and 30 departments; 98 AI use cases, 43 hackathons and seven data lake projects.
- Education — ORF (Oral Reading Fluency) tool covering 13.4 lakh students in 35,000 schools.
- Health — Universal screening of 71 lakh people with 41 diagnostic tests at low cost, linked to the Ayushman Bharat Digital Mission. Sanjeevini Programme: pilot in Kadapa district through 109 centres, statewide rollout from July 2026, target 5.2 crore people; a proposal for an AI doctor for every citizen.
- Agriculture — AI and drones for crop monitoring, pest and disease detection and precision farming.
Technology clusters being developed| Cluster | Location |
|---|
| Quantum Valley | Amaravati |
| Data & AI City | Visakhapatnam |
| Green Hydrogen Valley | Kakinada |
| Drone City | Orvakal |
| Electronics–Aero City | Lepakshi |
| Electronics–Space City | Tirupati |
5. Agriculture — NTR District to be a Model for Natural Farming
Chemical-free farming with traceable produce
- What — The Vijayawada MP announced efforts to make NTR district a model district for natural farming, aiming for all farmers in the district to adopt it.
- Awareness — 225-day seminars in every mandal to promote organic cultivation.
- Traceability — A QR-based traceability system lets consumers track produce from seed to sale, building trust in organic certification.
- Urban role — Promotion of terrace gardening in cities.
- Context — AP has been a frontrunner in community-based natural farming through Rythu Sadhikara Samstha; the approach uses indigenous cow-based inputs, indigenous seeds and regenerative practices.
Waste-to-wealth plan| Item | Figure |
|---|
| Waste processing centres | 107 |
| Organic manure output | 1,500 metric tonnes per day |
| Supply to farmers | At subsidised prices |
6. Tourism — Andhra Pradesh Pavilion at SATTE 2026, New Delhi
Taking AP destinations to global travel trade
- What — The AP Tourism Department inaugurated its pavilion at SATTE 2026 (South Asia's Travel & Tourism Exchange) at Yashobhoomi, India International Convention and Expo Centre (IICC), New Delhi.
- About SATTE — South Asia's largest travel and tourism exhibition, bringing together tourism boards, travel agencies, hospitality firms and international stakeholders.
- AP delegation — Deputy CEO Srinivas, Chief Marketing Officer Padmarani and Marketing Manager Rafeeq Ahmed.
- Stakeholders — Pravasin, Trek Sum, Holiday World, Radisson Blu Resort (Visakhapatnam), Brindavan Holidays (Tirupati), Starlet Suites, and tour operators registered on the APTA (Andhra Pradesh Tourism Authority) portal.
Destinations promoted| Type | Destinations |
|---|
| Natural tourism | Visakhapatnam coastline, Araku Valley, Gandikota canyon |
| Religious tourism | Tirupati, Vijayawada, Srisailam |