Vijayawada: Andhra Pradesh has become the first state in the country to issue exclusive operational guidelines for the development of urban infrastructure projects under the Public Private Partnership (PPP) model.
The Municipal Administration and Urban Development (MA&UD) department issued the framework through G.O.Rt.No.673 on May 27, 2026, with immediate effect. The guidelines will apply to Urban Local Bodies (ULBs), Urban Development Authorities (UDAs) and other agencies under the department.
The initiative is part of the Swarna Andhra Vision 2047, which aims to transform Andhra Pradesh into a $2 trillion economy with a per capita income of $42,000 by 2047. The government said rapid urbanisation and an estimated infrastructure gap of nearly Rs.45,000 crore necessitated increased private participation in civic projects.
Municipal administration minister Ponguru Narayana said the guidelines would help create investor-friendly, financially sustainable and future-ready cities, enabling urban bodies to move beyond grant-based development and attract private investment, innovation and technology.
MA&UD principal secretary S. Suresh Kumar said the framework has been designed as an implementation tool covering project identification, feasibility assessment, procurement, risk allocation, monitoring and dispute resolution.
The guidelines also propose a dedicated Urban PPP Unit to assist ULBs and UDAs in project preparation, approvals and transaction structuring.
The policy emphasises financial sustainability through asset monetisation, viability gap funding, escrow mechanisms, pooled finance, branding rights and dedicated revenue streams. It also includes PPP models such as DBFOT, BOT, Hybrid Annuity and Build-Own-Operate systems.
Officials said a pipeline of 56 urban infrastructure projects worth Rs.23,801.21 crore has been identified. Of these, 50 projects across 16 ULBs are valued at Rs.5,717.21 crore, while five CRDA/AGICL projects worth Rs.17,484 crore are under development.
Major projects include Amaravati Eye, Amaravati Marina, Sports City, ropeway systems and the Inner Ring Road.
The projects also cover waste-to-energy plants, underground drainage systems, housing, roads, solar power, water supply and redevelopment of municipal assets. Officials said the framework is expected to boost investor confidence and strengthen urban governance across Andhra Pradesh.
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