Andhra Pradesh Unveils ₹66,523-Crore Public–Private Partnership Roadmap to Transform Urban Infrastructure by 2029

Andhra Pradesh has introduced a comprehensive ₹66,523-crore Public–Private Partnership (PPP) roadmap aimed at reshaping the state’s urban infrastructure by 2029. Announced by the Municipal Administration and Urban Development Department, the plan sets an ambitious direction for modern, sustainable and technology-enabled urban growth across key regions of the state.

The renewed PPP strategy excludes the capital city of Amaravati, allowing the government to focus on a wider set of urban clusters that require rapid enhancement. The roadmap places strong emphasis on smart water systems, advanced mobility networks, upgraded road infrastructure, sustainable housing solutions and green building standards, ensuring that future development aligns with national and global sustainability benchmarks.

A notable part of the programme is the proposal to develop five smart cities equipped with integrated IoT platforms. These cities will incorporate intelligent services for water management, waste handling, traffic control and citizen services. The state has also planned the upgradation of 2,500 kilometres of major urban roads, along with the rollout of 15 new urban transit systems designed to ease congestion and improve last-mile connectivity.

In addition, the government has allocated ₹2,000 crore as Viability Gap Funding (VGF) for the current financial year. This funding is expected to support PPP models that require initial financial viability support, making it easier for private players to participate in long-term infrastructure projects.

The state has also set a target of attracting ₹35,000 crore in foreign direct investment (FDI) into new economic zones. These zones are expected to become engines of growth through renewed activity in logistics, clean energy, urban mobility and allied sectors. As part of this push, a total of 33 PPP projects have been proposed across waste-to-energy, renewable power, mobility solutions and other critical sectors.

According to Principal Secretary S Suresh Kumar, these projects will create strong economic momentum and position Andhra Pradesh among India’s fastest-growing hubs for urban development. With a mix of innovative technology, sustainable practices and global investment opportunities, the state aims to establish a robust urban ecosystem capable of supporting economic expansion for the next decade.