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The institute would have schools of excellence in Internet of Things and Cloud, Cyber Security, Big Data Analytics, Model Computing and Digital User Experience, Minister of IT and Information and Public Relations Palle Raghunatha Reddy said.
"Experts in these fields from top IT companies in the world will provide training at the institute," he said, adding the state Cabinet which met here today approved the setting up of the institute.
The Cabinet has also approved the launch of an insurance policy for 1.5 crore workers in the unorganised sector in the state, the minister said.
Under the scheme, named 'Chandranna Bima' after Andhra Pradesh Chief Minister Chandrababu Naidu, Rs 5 lakh would be paid as compensation in the case of an accidental death and Rs 3.2 lakh in case of disability.
"We will also include journalists of both print and electronic media in the scheme," Reddy added.
Each worker would have to pay only a service charge of Rs 15 while the state government would pay Rs 134.50 as its share of the yearly premium for the insurance policy.