Andhra govt launches over Rs 66,000-cr urban infra acceleration programme under PPP model

Amaravati: The Andhra Pradesh government on Monday announced a Rs 66,523-crore urban infrastructure acceleration programme under public private partnership model. The Municipal Administration and Urban Development (MA&UD) Department has projected this quantum of investment by 2029 across 12 priority sectors.

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"The Government of Andhra Pradesh launches Rs 66,523 crores urban Infra acceleration mission through PPP," said an official press release.

The priority sectors include smart water systems, modern transit corridors, integrated mobility, sustainable housing, and next-generation urban utilities, excluding greenfield capital Amaravati’s development.

These interventions are expected to contribute Rs 2.8 lakh crore to the Gross State Domestic Product (GSDP).

To catalyse PPP-led urban transformation plan, the state government has allocated Rs 2,000 crore as Viability Gap Funding (VGF) in the current year’s budget.

The projects are estimated to generate 2.3 lakh direct and indirect jobs, with a focus on 45 per cent skilled youth employment and 35 per cent women’s participation in emerging urban services and technologies.

Among the key components of this plan, the state aims to develop five smart cities with Internet of Things (IoT)-based systems, upgrade 2,500 km of roads, establish 15 urban transit systems and adopt green building norms statewide.

The government is targeting Rs 35,000 crore in Foreign Direct Investment for eight economic zones supported by structured PPP frameworks, technology-driven governance and innovative financing strategies, said the release.

The southern state aims to maximise benefits under central schemes, including Rs 10,000 crore Urban Challenge Fund and the Rs 400 crore Credit Enhancement Initiative.

S Suresh Kumar, Principal Secretary of MA&UD Department highlighted progress on the state’s 33-project under PPP model, spanning waste-to-energy, housing, urban mobility, tourism, renewable energy and commercial infrastructure.

Kumar said that Waste-to-Energy projects costing Rs 1,254 crore across Nellore, Rajahmundry–Kakinada, Kurnool, Kadapa, Vijayawada and Tirupati clusters are advancing steadily, while major initiatives like MIG Housing, Rushikonda Land Monetisation, and the Iconic Tower have entered active bidding stages.

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