Visakhapatnam Tests New Slum Redevelopment Model at Velampeta

Andhra Pradesh is set to test a new approach to urban slum redevelopment, with Velampeta in Visakhapatnam chosen as a pilot to transform a densely populated settlement into a modern residential complex.

The initiative aims to provide existing residents with better housing while reducing the government's direct financial burden. Instead of shifting families to distant locations, the model focuses on in-situ redevelopment, allowing residents to remain in their neighbourhood while gaining access to improved housing and basic amenities.

Under the Visakhapatnam Economic Region (VER) programme, the government has authorised the Greater Visakhapatnam Municipal Corporation (GVMC) to redevelop the Velampeta settlement in Zone 4, Ward 35. The project will cover 1,986.45 square metres and provide 177 housing units in a high-rise complex of up to 45 metres.

The project will follow the Design, Build, Finance and Transfer (DBFT) model, bringing in a private developer through a competitive tender. Instead of bearing the entire construction cost, the government will compensate the selected developer through Transferable Development Rights (TDRs).

The government has permitted a maximum TDR ratio of 1:4, with bidders required to quote the development rights they seek. The model is intended to unlock the value of scarce urban land while limiting public expenditure.

To make the project financially viable, several building-rule concessions have been approved, including relaxed setbacks and permission for high-rise construction. Parking requirements have been reduced from the standard 22% to around 10%, while certain fees and charges have also been exempted.

GVMC has been directed to complete the project within the stipulated timeframe. If successful, the Velampeta pilot could become a template for redeveloping congested settlements in Visakhapatnam and other Andhra Pradesh cities.