Andhra Pradesh outlines ₹66,523 crore PPP plan to boost urban infrastructure by 2029

The Municipal Administration and Urban Development Department has formulated a comprehensive Public Private Partnership strategy to strengthen urban infrastructure with an investment of ₹66,523 crore by 2029 across 12 thematic areas, including smart water systems, modern transport networks, and sustainable housing. The plan excludes the requirements of the capital city Amaravati. A sum of ₹2,000 crore has been allocated for Viability Gap Funding in the current year’s budget, according to a press release issued by Principal Secretary S. Suresh Kumar.

Mr. Suresh Kumar said the government was prioritising the development of five smart cities with integrated IoT infrastructure, 2,500 kilometres of upgraded roads, 15 new urban transit systems, and the adoption of green building norms aimed at achieving 40% higher energy efficiency in all new urban projects.

“We are setting benchmarks to ensure infrastructure development meets global standards and enhances the urban living experience. These projects will create strong economic momentum and position Andhra Pradesh as one of the country’s fastest-growing urban development hubs with sustainable financing models,” he said.

Mr. Suresh Kumar said the State was aiming to attract ₹35,000 crore in foreign direct investment into eight new economic zones that were expected to boost regional development and industrial growth. Innovative financing structures and partnership models were being developed for this purpose. A roadmap for effective execution and risk mitigation of PPP projects had also been prepared, supported by technology integration and performance monitoring.

The government was extending financial incentives to speed up PPP execution and was leveraging funding from international institutions, municipal bonds, and green bonds to ensure timely implementation.

Further, he said the department had proposed 33 PPP projects across key sectors such as Waste-to-Energy, urban mobility, housing, tourism, and renewable energy. Significant progress had been made in implementing Waste-to-Energy projects in the Nellore, Rajahmundry, Kakinada, Kurnool, Kadapa, Vijayawada, and Tirupati clusters. Major initiatives including MIG housing and Rushikonda land monetisation had entered the bidding stage, while several road, solar, mobility, and commercial PPPs had reached tender-ready and feasibility stages.

The State government was also utilising major Government of India programmes such as the Urban Challenge Fund worth ₹10,000 crore and the Credit Enhancement Initiative of ₹400 crore. It was finalising the disbursal of nearly ₹2,000 crore in urban reform incentives under the Scheme for Special Assistance to States for Capital Investment, he added.