AP Leads In Green Urban Transformation

At the ICLEI–ARISE event in New Delhi, state’s principal secretary to municipal administration, Suresh Kumar, highlighted the state’s integrated approach to promote green, climate-friendly urban growth through fiscal incentives, budgetary planning and institutional partnerships.

He said, “Our approach integrates sustainability into every layer of planning and finance. The idea is to make climate resilience a core part of urban governance, not a separate agenda. A major highlight of the strategy is India’s first fiscal incentive policy for green buildings. Developers of Indian green building council- rated projects are offered impact fee discounts of 5–15 per cent and registration fee refunds of 10–20 per cent based on their green rating.

This makes AP the first state to link fiscal policy directly with environmental performance, encouraging private investment in sustainable construction.

Regarding climate resilience, Suresh Kumar said it has also been mainstreamed into state budgeting, with allocations for urban afforestation, storm-water management, coastal protection and open green spaces.

He said partnerships with the World Bank, ADB, and HUDCO are strengthening the financing for climate-resilient infrastructure. Rajahmundry became one of the first cities to issue municipal bonds, enabling urban local bodies to access capital markets, he said.

He said, “To attract private investment, Andhra Pradesh is advancing public-private partnerships through the concentrated housing and municipal area (CHAM) model while leveraging urban climate funds for PPP-driven climate initiatives.”

Reforms to boost municipal revenues, streamline property tax systems, and improve financial transparency were also under way, he said.