AP govt announces incentives for Adani Enterprises data centre project in Vizag

The Andhra Pradesh state government, on Monday, announced special incentives to Adani Enterprises Limited (AEL) for setting up a data centre park, IT business park, skill university, and recreation centre at Madhurawada in Vizag. In line with the recommendations of the Andhra Pradesh State Investment Promotion Board, a Government Order (GO) was issued to extend certain incentives to the company.

Under the AI Cloud Hub Policy 2018-20, the AP state government decided to extend the timeline for implementing the Adani Enterprises data centre project in Vizag. Furthermore, it was noted that the project operations must commence within 3 years and all of its phases must be completed within 7 years, from the date of handing over of the land. According to the GO, it was decided to transfer 257.37 acres of land in Madhurawada in Vizag, which is currently under the possession of the Tourism Department to the Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC). Additionally, Adani Enterprises will be allotted 130 acres of land in Madhurawada. The company will be charged Rs 1 crore per acre of the allotted land.

The AP state government informed that the Adani Enterprises data centre project in Vizag will receive power incentives as per the distribution license option for a duration of 20 years from the date of handing over of land, following the request by the multinational conglomerate. The government will further allow the company to set up a 600 MV renewable energy park. However, this power project must be located within the state. The renewable energy park will be connected to the Central Transmission Utility (CTU) from which the data centre in Vizag will procure the power.

As per the GO, 100 per cent reimbursement of SGST on all data centre units, electrical, communication, and IT equipment for Capital expenditures (CAPEX) will be extended for a period of 7 years from the date of handing over of land. The data centre in Vizag will be categorised as mission critical infrastructure for an uninterrupted supply of water. The Adani Group will have to bear the cost of development for facilitating external infrastructure including the approach road from the nearest National Highway and drainage system.