Andhra Pradesh Unveils Rs 66,523-Cr Urban Infra Programme via PPP
Andhra Pradesh announces Rs 66,523 crore urban infrastructure acceleration programme via PPP model, targeting smart cities, transit systems, housing upgrades and major employment generation.
Amaravati: The Government of Andhra Pradesh has announced a significant urban infrastructure program worth Rs 66,523 crore under the Public-Private Partnership (PPP) model. The Municipal Administration and Urban Development (MAUD) Department projects that this investment will take place by 2029 across 12 main urban development sectors.
According to the official release, the program will focus on smart water management, modern transit corridors, integrated mobility, sustainable housing, and updated urban utility systems. However, it does not include the development of greenfield capital Amaravati.
This initiative is expected to add Rs 2.8 lakh crore to the Gross State Domestic Product (GSDP) and aims to boost economic growth by improving urban infrastructure.
To speed up implementation, the state government has set aside Rs 2,000 crore as Viability Gap Funding (VGF) in this year's budget. The projects are expected to create 2.3 lakh direct and indirect jobs, aiming for 45 percent skilled youth and 35 percent women in new urban service sectors.
Key goals under the program include:
- Developing five smart cities with IoT-enabled systems
- Upgrading 2,500 km of urban roads
- Establishing 15 modern transit systems
- Adopting statewide green building standards
The state is also targeting Rs 35,000 crore in Foreign Direct Investment (FDI) for eight economic zones, supported by PPP frameworks and digital governance.
Providing an update on ongoing projects, S Suresh Kumar, Principal Secretary of the MAUD Department, mentioned that 33 PPP projects—including waste-to-energy, housing, urban mobility, tourism, renewable energy, and commercial infrastructure—are progressing well. Waste-to-energy projects worth Rs 1,254 crore in the Nellore, Rajahmundry-Kakinada, Kurnool, Kadapa, Vijayawada, and Tirupati areas are moving forward, while various initiatives such as MIG Housing, Rushikonda Land Monetisation, and the Iconic Tower have reached active bidding phases.