The cabinet also decided to allot 1,965 acres of land to build a naval base at Rayavaram village in Visakhapatnam district, AP Minister for Information and Public Relations Palle Raghunatha Reddy told reporters.
He said that the cabinet also decided to issue ration cards to all eligible applicants from November 1 to sanction ration and LPG connections under the 'Deepam' scheme.
The cabinet has decided to grant nativity status to people who shift from Telangana to Andhra Pradesh before June 2, 2017, he said.
VAT will be reduced from 22.5 per cent to 0.5 per cent on international shipping and from 22.5 per cent to 5 per cent on national shipping transactions, he said.
The AP cabinet has also decided to raise forest cover of the state from 24 per cent to 40 per cent by 2020, by encouraging people to plant 15 crore saplings a year, he said.