VIJAYAWADA: Andhra Pradesh has become the first state in India to release dedicated operational guidelines for urban infrastructure projects under the Public Private Partnership (PPP) model.
The Urban Infrastructure PPP Guidelines, issued through G.O.Rt. No.673, will apply immediately to Urban Local Bodies (ULBs), Urban Development Authorities (UDAs), and other agencies under the Municipal Administration & Urban Development (MA&UD) Department. The reform is part of the Swarna Andhra Vision 2047, which aims to transform the state into a USD 2 trillion economy with a per capita income of USD 42,000.
With over 30% of the population already urbanised and the fiscal gap in infrastructure estimated at Rs 45,000 crore, the guidelines are expected to mobilise private investment and ease pressure on civic services such as housing, water supply, sewerage, solid waste management, and mobility. MA&UD Minister Ponguru Narayana said the guidelines mark a pioneering step in building investor-friendly and citizen-centric cities.
“These first-of-its-kind guidelines will enable ULBs and UDAs to attract private investment, technology, and operational efficiency, creating financially sustainable and liveable cities,” he stated.
Principal Secretary S Suresh Kumar explained that the guidelines are a practical tool covering project identification, feasibility, structuring, procurement, monitoring, and dispute resolution.
They emphasise bankability, transparent procurement, escrow mechanisms, securitisation of commitments, and digital asset registers. A dedicated Urban PPP Unit will support ULBs and UDAs in project preparation and monitoring.
The framework covers a wide range of PPP models, including BOT, DBFOT, Hybrid Annuity, Build-Own-Operate, O&M contracts, and Joint Development.
It also encourages asset monetisation, redevelopment of underutilised public assets, branding rights, pooled finance, viability gap funding, and convergence with national schemes such as AMRUT 2.0, PMAY 2.0, and the Urban Infrastructure Development Fund.
As part of the PPP push, the MA&UD Department has identified 56 projects worth Rs 23,801.21 crore including capital works.