Andhra Pradesh Approves INR 74.69 Billion Urban Infrastructure Plan in 2026

en.Wedoany.com Reported - The Andhra Pradesh government has approved an urban infrastructure investment plan totaling INR 74.69 billion, with funds allocated to upgrade the remaining 4,388 kilometers of city roads in the state that are either unbuilt or unupgraded. The plan adopts the Hybrid Annuity Model (HAM) and was formally approved by the Municipal Administration and Urban Development Department through Government Order No. G.O.Rt.No.1067 on August 19, 2026.

The funding composition of this administrative approval includes INR 55 billion for core capital works and INR 19.69 billion for projected interest payments over a 10-year period. The plan is part of a larger urban infrastructure project pipeline totaling INR 407.44 billion, and under the Chief Minister's Swarna Andhra 2047 vision, the relevant projects will be implemented or planned across all 123 Urban Local Bodies (ULBs).

The gap assessments and infrastructure investment plans prepared for each Urban Local Body outline specific needs in water supply, sewerage, drainage, and roads. The documents indicate that the state requires a daily water treatment capacity of 724 million liters per day (MLD), 9,608 kilometers of water supply pipelines, 1,443 MLD of sewage treatment capacity, 19,081 kilometers of underground drainage pipes, and 23,612 kilometers of stormwater drainage pipes, in addition to 4,388 kilometers of city roads that are yet to be built or upgraded. These documents cover requirements through 2029 and provide the basis for prioritizing projects across the state.

Under the HAM plan, after upgrading the 4,388 kilometers of roads, the state's total urban road network of 25,626 kilometers will be fully completed. Of the INR 55 billion capital component, INR 46.56 billion is allocated for roads with integrated drainage facilities, INR 5.09 billion for 541 community parks, INR 2.47 billion for 20,340 streetlight points, and INR 877.8 million for 1,186.56 kilometers of central medians.

In terms of financing arrangements, 40% of the capital cost (INR 22 billion) will be provided upfront from funds under the LRS and building penalty schemes managed by the Directorate of Town and Country Planning; the remaining 60% (INR 33 billion) will be financed by the concessionaire, repaid in 40 quarterly installments over 10 years through an escrow account secured by urban revenues, with a mandatory 10-year Operation and Maintenance (O&M) obligation. Project implementation will be coordinated by the relevant urban agencies to ensure integrated delivery.

Officials stated that the broader INR 407.44 billion framework includes INR 152.74 billion for ongoing projects, INR 254.69 billion for new proposals, and INR 11.76 billion raised locally since 2024.