Andhra cabinet to scrap door-delivery of essential commodities, fair price shops to open from June 1

Hindustan Times

20-05-2025

The Andhra Pradesh cabinet, chaired by chief minister N Chandrababu Naidu, on Tuesday announced the decision to do away with the method of doordelivery of essential commodities to the consumers under public distribution system and re-introduce fair price shops to distribute the commodities from June 1.
After the cabinet meeting, state civil supplies minister Nadendla Manohar said that it was decided to discontinue the current practice of delivering ration commodities through Mobile Dispensing Units (MDUs) which was introduced during the previous YS Jagan Mohan Reddy government.
'The decision was taken after obtaining the feedback from the consumers through a survey. It was revealed that 25% of ration card-holders did not receive essential commodities, and another 26% consumers complained that MDU operators were charging higher prices,' he told reporters.
He said there were other operational shortcomings in the distribution of commodities through MDUs, such as diversion of goods, inability to cover all the areas and lack of manpower to run MDUs.
'The scrapping of the scheme will save the government ₹353.81 crore. So, starting June 1, the government will reintroduce 29,000 fair price shops that were existing earlier,' he said, adding that door-delivery of commodities would be done only in case of senior citizens and to persons with disabilities.
Manohar said the previous government had purchased 9,260 MDUs at a cost of ₹1,860 crore, with an additional ₹200 crore spent on a pilot project. 'Beneficiaries who obtained vans through the SC, ST, BC, EBC and other welfare corporations and have already paid 10% of the vehicle cost will receive full ownership of those vans free of charge,' he added.
State information and public relations minister K Parthasarathy said the state cabinet ratified three separate Memoranda of Understanding (MoUs) signed between the state government and the global IT majors IBM, Tata Consultancy Services (TCS) and Larsen & Toubro (L&T) for setting up the 'Quantum Valley' project in Amaravati.
'Backed by these technology giants, Andhra Pradesh aims to position itself as India's leader in advanced technology. The project is expected to nurture cutting-edge innovation, attract world-class talent and create high-quality employment opportunities for the youth of the state. Through strategic partnerships and forward-looking leadership, the state government intends to foster state-of-the-art breakthroughs and build a robust future-ready economy,' he said.
The cabinet approved recommendations of the State Investment Promotion Board (SIPB) for investment proposals from five companies - Deccan Fine Chemicals, Bharat Electronics Ltd, PUR Energy Pvt Ltd, Blue Jet Healthcare Ltd and Jupiter Renewables Pvt Ltd.
'These projects, totalling ₹9,246 crore, are expected to create around 7,766 jobs. The state will allocate land and provide necessary infrastructure such as roads, industrial water, and energy,' the minister said.
The cabinet also gave the green signal to reallocate 500 acres of land for the Bhogapuram Greenfield International Airport.
It also approved multiple renewable energy and bioenergy projects to be established at various parts of the state like Eluru, YSR Kadapa, Anantapur and Sri Satya Sai districts. It also decided to allot 41.00 acres of land in YSR Kadapa district for a 1,000 MW pumped storage hydro power project and ( ₹ 2.09 crore), and another 12.87 acres in Sri Sathya Sai district for a 500 MW hydro project ( ₹64.35 lakh), to be set up by Adani Green Energy Ltd.
The cabinet also approved establishment of India International University of Legal Education and Research (IIULER) under the Bar Council of India Trust at Amaravati and shifting of Potti Sreeramulu Telugu University's headquarters from Hyderabad to Rajamahendravaram.