Andhra Pradesh Sanctions ₹7,469 Crore Infrastructure Push Across Municipalities and Corporations

In a major urban development push, the Government of Andhra Pradesh, through its Municipal Administration and Urban Development (MA&UD) Department, has issued administrative sanctions for an outlay of ₹7,469.46 crore to upgrade core civic infrastructure across all 123 Urban Local Bodies (ULBs) in the state.

Executed under the Hybrid Annuity Model (HAM), the initiative forms a key component of the state's broader urban infrastructure vision, covering roads, storm-water drainage networks, green public spaces, street lighting, and central medians. The total outlay comprises ₹5,500 crore in core capital investment alongside ₹1,969.46 crore allocated to service interest obligations over a ten-year concession period.

Under the sanctioned HAM framework, the government aims to eliminate long-standing urban infrastructure gaps by delivering targeted physical improvements across five core sectors:

• 100% Road Connectivity and Integrated Drainage: Allocating ₹4,655.82 crore for the construction and widening of 4,388 kilometers of urban roads paired with integrated side drains, fully closing the state's remaining urban road network gap.
• Enhanced Drainage Systems: Building modern, flood-resilient storm-water drainage channels running alongside urban roads to prevent localized waterlogging during heavy monsoon rains.
• Greenery and Park Development: Sanctioning ₹509.12 crore for the establishment and rejuvenation of 541 municipal parks to expand urban green cover and provide accessible public recreational spaces.
• New Street Lighting Infrastructure: Earmarking ₹247.28 crore to install 20,340 modern, energy-efficient street lights to bolster nighttime public safety and visibility across municipal wards.
• Road Median Beautification: Directing ₹87.78 crore toward the greening and aesthetic enhancement of 1,186 kilometers of central medians along urban traffic corridors.

Under the financial architecture of the HAM project, 40% of the capital outlay (₹2,200 crore) will be provided upfront through Layout Regularisation Scheme (LRS) and Building Penalisation Scheme (BPS) revenues managed by the Directorate of Town and Country Planning (DTCP).

The remaining 60% (₹3,300 crore) will be mobilized by private concessionaires and repaid by the state government through 40 quarterly annuity installments backed by a dedicated escrow account over a 10-year period.

Concessionaires will also remain legally bound to handle operation and maintenance (O&M) responsibilities for ten years, ensuring sustained asset quality and long-term durability across urban municipalities and municipal corporations.