Andhra eyes Rs 66,523 for urban projects, expects Rs 35,000 crore in FDI

The initiative spans 12 priority sectors, including smart water systems, modern transit corridors, next-generation urban utilities excluding the development of Amaravati as the state capital.

Hyderabad: The Andhra Pradesh government on Monday 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 excluding the development of Amaravati as the state capital.

Officials estimate that these projects will contribute about Rs 2.8 lakh crore to the state’s Gross 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 estimated 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 MA & UD secretary, S Suresh Kumar.

As part of this mission, Andhra Pradesh will prioritise development of five smart cities with deep IoT integration, 2,500 km of upgraded urban road networks, 15 new urban transit systems and statewide 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.

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 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 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 four 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 timely execution of ongoing and upcoming projects.