AP Sanctions $10,251 Crore for 281 Urban Infrastructure Projects

The Andhra Pradesh government has sanctioned Rs 10,251.72 crore for the implementation of 281 urban infrastructure projects under the AMRUT 2.0 scheme across various Urban Local Bodies (ULBs). These projects primarily focus on enhancing urban drinking water systems and will be executed through the Concessionaire Hybrid Annuity Model (CHAM), a public-private partnership model designed to accelerate infrastructure development while addressing funding constraints.

The Andhra Pradesh Urban Finance and Infrastructure Development Corporation (APUFIDC) will act as the nodal agency for project implementation. The funding structure includes Rs 2,470.56 crore from the Central government, Rs 2,490.72 crore from the State government, and Rs 590.97 crore from ULBs. Additionally, Rs 924.78 crore has been allocated through the 15th Finance Commission grants.

The financial outlay comprises Rs 6,477.03 crore in capital expenditure, Rs 1,498.97 crore in operational expenditure, and Rs 2,275.72 crore as interest payments to concessionaires. CHAM enables private sector participation to fill viability gaps and ensure timely execution, especially when state borrowing capacity is limited.

These projects will also utilize the Government of India’s ‘SNA-SPARSH’ funding framework, which requires upfront contributions from the State and ULBs to unlock Central funding support.

News by Rahul Yelligetti.