AP Sanctions Rs.7,469 Crore HAM Push for Urban Infrastructure
Of the HAM capital component, ₹4,655.82 crore has been earmarked for roads and drains, ₹509.12 crore for parks, ₹247.28 crore for street lighting and ₹87.78 crore for central medians.
Vijayawada: The Andhra Pradesh government has sanctioned a ₹7,469.46-crore Hybrid Annuity Model (HAM) programme to bridge urban infrastructure gaps, with a focus on roads, drainage, parks, central medians and street lighting across 123 Urban Local Bodies (ULBs).
The municipal administration and urban development department issued G.O.Rt.No.1067 on August 19 following Cabinet approval and concurrence from the Finance Department. The package comprises ₹5,500 crore for capital works and ₹1,969.46 crore towards estimated interest payments over 10 years.
The programme is part of a larger ₹40,743.67-crore urban infrastructure push aligned with Chief Minister N. Chandrababu Naidu’s Swarna Andhra 2047 vision of creating planned, liveable and investment-ready cities. This excludes nearly ₹80,000 crore worth of infrastructure projects in the CRDA area.
Of the HAM capital component, ₹4,655.82 crore has been earmarked for roads and drains, ₹509.12 crore for parks, ₹247.28 crore for street lighting and ₹87.78 crore for central medians.
The state’s urban road network spans 25,626 km, of which 21,238 km, or 82.9 per cent, has already been improved. The remaining 4,388-km gap will be covered under the HAM programme. Detailed Project Reports (DPRs) cover 4,388 km of roads, 541 parks, 20,340 lighting points and 1,186.56 km of central medians.
Under the financing model, ₹2,200 crore, or 40 per cent of the capital cost, will be provided upfront through LRS/BPS funds, while concessionaires will finance the remaining ₹3,300 crore. Their investment will be repaid over 10 years in 40 quarterly instalments through an escrow mechanism. The concessionaires will also be responsible for operation and maintenance for 10 years.
Minister for MA&UD P. Narayana said the government was shifting from piecemeal works to integrated urban development by linking roads with drainage, sanitation, lighting and public spaces.
Gap assessments across all 123 ULBs identified shortages of 724 MLD in water-treatment capacity, 9,608 km of water-distribution networks, 1,443 MLD of sewage-treatment capacity, 19,081 km of underground drainage, 23,612 km of storm-water drains and 4,388 km of roads.
The wider programme includes 514 projects worth ₹15,274.21 crore currently under implementation through AMRUT 2.0, AIIB and UIDF, while new proposals worth ₹25,469.46 crore are being taken up under UIDF, the Urban Challenge Fund and HAM.
Principal Secretary S. Suresh Kumar said the focus was on measurable outcomes, including capacities created, networks completed, households connected and assets maintained.
The urban development push also includes 58 new parks, 110 refurbished parks and 45 parks currently under development. Under Harithandhra, 4.43 lakh saplings have been planted along 2,165 km of roads.
