Narayana Dismisses Reports on Privatisation of Municipal Assets
Narayana said nearly ₹29,000 crore would be required to convert kutcha drains into permanent drainage networks across the state.
Vijayawada: Minister for Municipal Administration P. Narayana on Tuesday dismissed reports alleging privatisation of municipal assets as “completely false.” However, he went on to clarify that municipalities undertake projects under the Public-Private Partnership (PPP) model to strengthen their financial position.
Inaugurating the two-day Urban Challenge Fund Capacity Building Workshop organised by HUDCO in Vijayawada, the minister said Andhra Pradesh government is preparing a major urban infrastructure expansion programme focused on drinking water supply, drainage, roads, and street lighting.
He said the government has identified five priority sectors for the next three years — quality drinking water supply, solid waste management, used-water management, and internal roads and street lighting. He pointed out that projects worth ₹17,394 crore have been planned to provide tap water connections to every household in urban areas. Of this, works valued at ₹12,395 crore have already been launched under AMRUT 1.0, AMRUT 2.0, UIDF and AIIB-supported schemes.
Narayana said nearly ₹29,000 crore would be required to convert kutcha drains into permanent drainage networks across the state. Municipal areas have been classified into high, medium and low-density zones, with drainage works in high and medium density areas proposed in the first phase at an estimated cost of ₹9,000 crore.
He said Andhra Pradesh is expected to receive ₹3,600 crore from the centre under the Urban Challenge Fund. An additional ₹10,800 crore is proposed to be mobilised through HUDCO and other financial institutions. Projects worth ₹5,000 crore in municipalities lacking repayment capacity would be executed under the annuity model.
The minister cautioned officials against replacing roads and drains that are already in good condition due to political pressure, stressing that public funds should be utilised only where necessary. He directed municipal commissioners to undertake desilting of drains on a war footing ahead of the monsoon.
HUDCO chairman and managing director Sanjay Kulshrestha said Andhra Pradesh is well positioned to utilise Urban Challenge Fund resources. He described HUDCO as a development partner of AP supporting project planning, financing and PPP initiatives.
Principal secretary (MA&UD) S. Suresh Kumar said infrastructure works worth ₹15,800 crore are being revived and implemented. Municipal Administration director P. Sampath Kumar asked urban local bodies to develop revenue-generating projects instead of depending solely on government grants.
