AP launches ₹66,000 cr urban infrastructure program

The Andhra Pradesh government on Monday announced an ambitious urban infrastructure development program worth ₹66,523 crore under the Public-Private Partnership (PPP) model. The initiative, led by the Municipal Administration and Urban Development (MA&UD) department, aims to invest in 12 priority sectors by 2029.

An official government statement described the initiative as a “fast-track mission for urban infrastructure development through PPP.” The program focuses on key areas such as smart water systems, modern transport networks, integrated mobility solutions, sustainable housing, and next-generation urban utilities, excluding the development of the greenfield capital, Amaravati. These investments are expected to contribute around ₹2.8 lakh crore to the state’s gross domestic product.

To accelerate the PPP-led urban transformation, the state government has allocated ₹2,000 crore in the current year’s budget as viability gap funding. The projects are expected to generate approximately 2.3 lakh direct and indirect jobs, with 45% of employment targeted for skilled youth and 35% for women. The focus is also on involving citizens in modern urban services and technology-driven solutions.

Key components of the program include the development of five smart cities equipped with Internet of Things (IoT)-based systems, modernization of 2,500 km of roads, establishment of 15 urban transport systems, and statewide compliance with green building regulations.

The government also aims to attract ₹35,000 crore in foreign direct investment across eight designated economic zones, supported by strategic PPP frameworks, technology-driven governance, and innovative financial strategies. Additionally, a ₹10,000 crore Urban Challenge Fund, including a ₹400 crore Credit Enhancement Initiative, will leverage maximum benefits from central government schemes.

S. Suresh Kumar, Principal Secretary of MA&UD, highlighted progress on 33 PPP model projects across the state, spanning sectors from housing, urban mobility, and tourism to renewable energy and commercial infrastructure. Waste-to-energy projects worth ₹1,254 crore are progressing steadily in clusters like Nellore, Rajahmundry, Kakinada, Kurnool, Kadapa, and Vijayawada-Tirupati. Other major projects, including MIG housing, Rushikonda land monetization, and the Iconic Tower, have entered an active bidding stage.