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The Andhra Pradesh government has launched a INR 66,523-crore urban infrastructure acceleration mission under the PPP model, targeting major upgrades across 12 priority sectors by 2029. The plan focuses on smart water systems, modern transit corridors, integrated mobility, sustainable housing and advanced utilities, excluding Amaravati's development. The state expects the programme to add nearly INR 2.8 lakh crore to GSDP and has allocated INR 2,000 crore as Viability Gap Funding. The initiative is set to create about 2.3 lakh jobs, with strong emphasis on skilled youth and women's participation. Key proposals include five smart cities, 2,500 km of road upgrades, 15 transit systems and INR 35,000 crore in FDI for economic zones.
The Andhra Pradesh government announced earlier this week that it had launched an INR 66,523-crore urban infrastructure acceleration initiative to be executed under a public private partnership structure. According to the Municipal Administration and Urban Development (MA&UD) Department, this volume of investment has been projected to evolve by 2029 across a set of 12 priority sectors. Advertisement
An official release conveyed that the state government had launched what it described as an INR 66,523-crore urban infrastructure acceleration mission under the PPP route. The priority sectors identified for this programme include smart water systems, modern transit corridors, integrated urban mobility, sustainable housing and advanced utility systems. The plan explicitly excludes development works related to the greenfield capital city of Amaravati.
The government expects these urban interventions to contribute nearly INR 2.8 lakh crore to the Gross State Domestic Product, with the scale of activity intended to trigger comprehensive city-level transformation. To support PPP-led development, the administration has set aside INR 2,000 crore as Viability Gap Funding in the current financial year.
The projects under this mission are projected to create close to 2.3 lakh direct and indirect employment opportunities. The employment strategy is designed to ensure that 45 per cent of the jobs go to skilled youth, while women's participation is expected to account for around 35 per cent, particularly in emerging urban services and technology-based functions.
As part of the key components of the upgrade plan, the state has outlined proposals to develop five smart cities powered by Internet of Things (IoT)-based systems, upgrade 2,500 km of road networks, set up 15 urban transit systems and encourage adoption of green building norms across urban settlements. Alongside this, the government is pursuing a target of mobilising INR 35,000 crore in Foreign Direct Investment for eight economic zones guided by structured PPP models, technology-enabled governance mechanisms and new financing tools.
The state also aims to secure maximum benefits from central schemes, including the INR 10,000-crore Urban Challenge Fund and the INR 400-crore Credit Enhancement Initiative, which are expected to reinforce planned urban sector investments.
S. Suresh Kumar, Principal Secretary of the MA&UD Department, highlighted that progress is ongoing across 33 PPP-based projects covering waste-to-energy, housing, mobility, tourism, renewable energy and commercial infrastructure. He noted that the Waste-to-Energy projects, estimated at INR 1,254 crore and spread across clusters in Nellore, Rajahmundry-Kakinada, Kurnool, Kadapa, Vijayawada and Tirupati, are advancing well. He further stated that major initiatives such as MIG Housing, Rushikonda land monetisation and the Iconic Tower project have now reached active bidding stages.
The state's extensive PPP-driven agenda reflects a continued shift towards long-term urban transformation backed by diversified financing, global investment interest and technology-oriented governance. By integrating employment objectives, mobility upgrades, sustainability norms and central-scheme leverage, the plan positions Andhra Pradesh to significantly expand its urban competitiveness over the next few years.
Source - PTI
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