The Andhra Pradesh government has announced a major push for urban infrastructure development through a Public–Private Partnership (PPP) model, targeting an investment of Rs 66,523 crore by 2029.
The initiative spans 12 priority sectors, including smart water systems, modern transit corridors, integrated mobility, sustainable housing and next-generation urban utilities.
It is estimated that these projects will contribute about Rs 2.8 lakh crore to the state’s Gross State Domestic Product (GSDP). The government has set aside Rs 2,000 crore as Viability Gap Funding (VGF) in the current fiscal budget to support these PPP ventures.
The projects are expected 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.
“Our benchmarks aim to meet global urban infrastructure standards while ensuring a superior living experience for citizens. These initiatives will create unprecedented economic momentum and firmly position Andhra Pradesh as one of India’s fastest-growing urban development hubs,” said S Suresh Kumar, the Secretary of the Municipal Administration and Urban Development Department.
As part of this mission, Andhra Pradesh will prioritise the development of five smart cities with deep IoT integration, 2,500 km of upgraded urban road networks, 15 new urban transit systems, and state-wide adoption of green building norms targeting 40 per cent higher energy efficiency.
The state aims to attract Rs 35,000 crore in Foreign Direct Investment (FDI) into eight proposed economic zones by deploying innovative financing models, technology-driven governance and structured PPP frameworks.
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A dedicated PPP unit, a full policy framework and a detailed execution and risk-mitigation roadmap have already been established.
Suresh also highlighted strong progress on the state’s 33-project PPP pipeline, spanning waste-to-energy, housing, urban mobility, tourism, renewable energy and commercial infrastructure.
Notably, Rs 1,254 crore waste-to-energy projects across the 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.
Under the state’s reform-driven urban strategy, Andhra Pradesh is set to maximise benefits under Government of India schemes such as the Urban Challenge Fund of Rs 10,000 crore, Credit Enhancement Initiative of Rs 400 crore, Urban Reforms Incentives under SSASCI 2025-26 – nearly Rs 2,000 crore, and Municipal Shared Service Centres (MSSC) of Rs 50 crore sanctioned.
A major pillar of this approach is the Land Monetisation Programme covering 1,300 acres across 73 parcels in 18 Urban Development Authorities, designed to convert idle government lands into high-value urban assets. EOIs have already been issued in some UDAs, with others to follow shortly.
The Principal Secretary has directed all implementing agencies to fast-track approvals, expedite statutory clearances and address stakeholder concerns to ensure the timely execution of ongoing and upcoming projects.
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