AP Govt Takes Up New Redevelopment Model for Slums, to be Launched in Vizag
Adopting large-scale urban redevelopment models such as the one implemented in Dharavi, the government proposes to create modern housing for existing residents in a model that minimises the direct financial burden on the exchequer
By : PTI
Update: 2026-08-11 10:51 GMT
Amaravati: The Andhra Pradesh government has approved a new redevelopment model for slums, and its implementation is to begin from Velampeta slum in Visakhapatnam in a major push towards transforming congested urban settlements.
Adopting large-scale urban redevelopment models such as the one implemented in Dharavi, the government proposes to create modern housing for existing residents in a model that minimises the direct financial burden on the exchequer, an official press release issued on Tuesday said.
"In a major push towards transforming congested urban settlements, the Andhra Pradesh Government has cleared a new redevelopment model for slums, which is to begin in Velampeta slum in Visakhapatnam," it said.
The government has accorded permission to the Greater Visakhapatnam Municipal Corporation (GVMC) to redevelop the Velampeta Slum in Zone-IV, Ward Number 35 under the Visakhapatnam Economic Region (VER) programme on a Design, Build, Finance and Transfer (DBFT) basis.
The project will accommodate 177 housing units on a compact site measuring just 1,986.45 sq metres through the construction of a high-rise residential complex of up to 45 metres.
Instead of relying entirely on conventional government funding, the successful private bidder will undertake redevelopment with a Transferable Development Rights (TDR), a key feature of the project.
"The Government has permitted a TDR ratio of up to 1:4 as the maximum bidding parameter, with the project to be awarded through a competitive tender process. The bidder will quote the TDR requirement competitively in lieu of the construction cost," said the press release.
This is expected to create a market-driven mechanism for upgrading valuable urban land while ensuring that existing residents receive proper housing, it said.
To make the project viable, the southern state has also approved a series of special relaxations and exemptions under the Andhra Pradesh Building Rules.
These include permission for a high-rise complex in a congested area, reduced setbacks, parking provision of around 10 per cent of the total built-up area against the normally prescribed 22 per cent as well as waiver of specified fees and charges payable to GVMC, urban development authorities and other agencies.
Further, the government has directed GVMC to execute the Velampeta redevelopment in a time-bound manner and treat it as a pilot project for replication in other slum pockets under the VER Programme.
The initiative could therefore pave the way for a much larger programme of in-situ redevelopment across Visakhapatnam, where residents can receive modern housing without being permanently displaced from their existing neighbourhoods, said the press release.
Besides the Velampeta pilot, the government has also directed the Commissioner and Director of Municipal Administration to prepare a draft policy for slum redevelopment and middle-class housing, in consultation with all stakeholder departments.
If successful, the Visakhapatnam model could emerge as a scalable framework for rejuvenating ageing and congested urban settlements across Andhra Pradesh while simultaneously unlocking economic value from scarce city land, the press release added.