VIJAYAWADA: In a major boost to urban governance, the Ministry of Housing and Urban Affairs (MoHUA) has approved Andhra Pradesh’s proposal to establish and operationalise Municipal Shared Service Centres (MSSCs), recommending a grant of Rs 50 crore under the 15th Finance Commission.
The first instalment of Rs 25 crore has been sanctioned, marking a pivotal step in the State’s efforts to modernise municipal services and enhance financial sustainability. Andhra Pradesh now stands as a national leader in shared municipal governance reforms, Principal Secretary of Municipal Administration and Urban Development Department, S Suresh Kumar said.
Conceptualised by the Municipal Administration and Urban Development (MA&UD) Department, the MSSC model aims to address persistent challenges faced by Urban Local Bodies (ULBs), including limited manpower, fragmented systems, and low revenue generation. It introduces a unified, technology-driven governance framework.
The proposal is anchored on four strategic pillars: Land Asset Management, Water Management, Energy Efficiency and ICT-Driven Citizen Services. The MSSC framework will integrate 29 services across backend, frontend, and field operations.
The digital QR ecosystem is expected to deliver faster, transparent, and accessible services to citizens, while boosting efficiency, revenue, and professionalism within ULBs. A total of 123 ULBs will participate, with the Commissioner and Director of Municipal Administration (CDMA) serving as the nodal agency. Andhra Pradesh Urban Infrastructure Asset Management Limited (APUIAML) will oversee strategic planning, digital rollout, and capacity building.
ULBs will be grouped into three regional clusters for supervision, each led by a Joint Director. A dedicated Implementation Cell within CDMA will manage daily operations, supported by a State-Level Steering Committee chaired by the CDMA Director for policy oversight and coordination.
The initiative is expected to redefine urban governance, improve municipal revenues, enhance transparency, and set a replicable benchmark for smart, inclusive, and sustainable administration.
“This project is a blueprint for modern municipal governance in Andhra Pradesh,” said Suresh Kumar.