Vijayawada: In a major boost to Andhra Pradesh's urban infrastructure agenda, the Centre has approved four key projects worth Rs 1,990.83 crore under the Urban Challenge Fund (UCF), with a committed central assistance of Rs 497.71 crore for Visakhapatnam and Mangalagiri-Tadepalli urban regions.
The approvals were granted by the national apex committee of the housing and urban affairs ministry under Phase-I of the UCF, aimed at promoting reform-linked, market-driven and technology-enabled urban infrastructure development.
The projects include development of underground drainage systems, 24x7 smart water supply, bulk water supply modernisation, sewerage treatment infrastructure and SCADA-enabled monitoring systems.
GVMC: Three major projects have been sanctioned for the GVMC. These include a Rs 606.78-crore underground drainage project in Madhurawada, a Rs 689.49-crore smart water supply system and a Rs 110.46-crore modernisation of bulk and semi-bulk water supply systems. The fourth project, costing Rs 584.10 crore, relates to an underground drainage system in Mangalagiri-Tadepalli municipal corporation under the hybrid annuity model.
Officials said the Madhurawada underground drainage project would cover 401km of sewer network, over 21,800 house service connections and a 20mld sewage treatment plant at Kapuluppada. The project also includes AI-backed SCADA monitoring, treated wastewater reuse and sludge-to-Bio-CNG integration.
The 24x7 smart water supply project aims to replace the existing intermittent water supply of less than an hour daily with a continuous pressurised supply. It includes a 65mld water treatment plant, 417km water distribution network and over 37,000 smart AMI connections with leak detection systems and district metering areas.
The bulk water modernisation project is expected to improve GVMC's revenue collection through ultrasonic AMI meters, digital billing and remote valve operations covering more than 7,800 connections.
The MTMC underground drainage project would provide 303.79km sewer network, 33,842 house service connections and six decentralised sewage treatment plants with a combined treatment capacity of 26.68mld.
Municipal administration and urban development minister Ponguru Narayana said the approvals reflected AP's focused push towards infrastructure-led urban growth under the leadership of chief minister N Chandrababu Naidu.
Principal secretary Suresh Kumar said the state has prepared a shelf of urban infrastructure projects worth nearly Rs 15,000 crore to maximise central assistance and attract market finance under the UCF framework.
He said the state government, in coordination with the finance department, is also planning to raise Rs 1,000 crore through municipal bonds by August 2026. GVMC is additionally being positioned for green bonds to support climate-resilient and environmentally sustainable urban infrastructure projects.
AP gets Rs 1,990-crore boost for urban infrastructure, plans Rs 1,000-crore municipal bonds
MD ILYAS |DC
VIJAYAWADA, MAY 21
In a major boost to Andhra Pradesh's urban infrastructure agenda, the Centre has approved four key projects worth Rs 1,990.83 crore under the Urban Challenge Fund (UCF), with a committed central assistance of Rs 497.71 crore for Visakhapatnam and Mangalagiri-Tadepalli urban regions.

