Andhra government approves Rs 7,469-crore urban infrastructure plan

VIJAYAWADA: The State administration has scaled up its urban infrastructure drive by issuing Administrative Sanction for a Rs 7, 469.46-crore programme under Hybrid Annuity Model (HAM).

Key points

• Under APTIDCO, 1, 87, 456 of 2, 61, 640 sanctioned houses were completed by July, with the rest targeted by December 2026.
• The newly sanctioned Rs 7, 469.46-crore HAM package specifically targets the entire remaining 4, 388-km urban road gap-upgrading the state's total 25, 626-km urban road network to 100 per cent completion.
• This broader investment program excludes Rs 80, 000 crore worth of ongoing infrastructure projects within the CRDA area in Amaravati.
• Swachha Andhra, greening and housing initiatives are driving civic transformation statewide.

Formalised through G.O.Rt.No.1067 issued by the Municipal Administration & Urban Development (MA&UD) Department on August 19, 2026, the sanctioned outlay includes Rs 5, 500 crore for core capital works and Rs 1, 969.46 crore to cover estimated interest obligations over ten years.

It forms part of an expansive Rs 40, 743.67-crore urban infrastructure pipeline at present being executed or planned throughout all 123 Urban Local Bodies (ULBs) in line with the CM's Swarna Andhra 2047 vision.

Notably, this broader investment program excludes Rs 80, 000 crore worth of ongoing infrastructure projects within the CRDA area in Amaravati. The cornerstone of the state's urban development strategy rests on comprehensive Gap Assessment Reports and Infrastructure Investment Intends covering every ULB up to 2029.

These assessments, including 724 MLD in water-treatment capacity, 9, 608 km in water-distribution lines, 1, 443 MLD in sewage-treatment capacity, 19, 081 km of underground drainage, 23, 612 km of storm-water drainage, and 4, 388 km of unbuilt or un-upgraded urban roads.

Notably, the newly sanctioned Rs 7, 469.46-crore HAM package specifically targets the entire remaining 4, 388-km urban road gap-upgrading the state's total 25, 626-km urban road network to 100 per cent completion. Within the Rs 5, 500-crore capital component, Rs 4, 655.82 crore is allocated for roads with integrated drains, Rs 509.12 crore for 541 neighborhood parks, Rs 247.28 crore for 20, 340 street-lighting points, and Rs 87.78 crore for 1, 186.56 km of medians.

Under the financial structure, 40 per cent of the capital cost (Rs 2, 200 crore) will be provided upfront via LRS and Building Penalty Scheme (BPS) funds managed by the Directorate of Town and Country Planning (DTCP).

Notably, the remaining 60 per cent (Rs 3, 300 crore) will be funded by the concessionaire and repaid over ten years in 40 quarterly instalments via an Escrow Account backed by urban revenues, with mandatory 10-year Operation and Maintenance (O&M) obligations to the concessionaire.

MA&UD Minister P Narayana emphasised that the administration has moved away from piecemeal projects toward an integrated approach where infrastructures are built together to deliver visible improvements to citizens' daily lives.

Meanwhile, the broader Rs 40, 743.67-crore statewide funding framework combines Rs 15, 274.21 crore throughout 514 ongoing projects under AMRUT 2.0, AIIB, and UIDF Tranches I & II, alongside Rs 25, 469.46 crore in new proposals under UIDF Tranches III & IV, the Urban Challenge Fund, and the HAM package, along with Rs 1, 176.06 crore grounded since 2024 through local ULB, UDA, and Sub-Plan resources.

Swachha Andhra, greening and housing initiatives are driving civic transformation statewide. Scientific processing covers 57% of solid waste, with 108 integrated facilities planned. While six Compressed Bio-Gas plants are targeted by March 2027, four Waste-to-Energy projects are underway.

Taken together, the developments around andhra government approves Rs 7, 469-crore urban infrastructure plan point to a situation that is still moving, and the coming days should bring more clarity.