PPP Projects to Drive AP's Growth, Says CM Naidu

Vijayawada:Chief Minister N. Chandrababu Naidu on Thursday said that Viability Gap Funding (VGF)-backed Public-Private Partnership (PPP) projects would become the cornerstone of Andhra Pradesh's future development.

Rapid economic growth could be achieved only through greater collaboration between the government and the private sector, he asserted on Thursday while reviewing the state's PPP projects and expenditure with senior officials.

The Chief Minister said that while India had witnessed economic reforms in the past, the nation was now seeing an infrastructure revolution. He underlined the need to develop all PPP projects on a sustainable model with built-in opportunities for economic activity and revenue generation.

Officials informed the Chief Minister that the state is currently implementing 260 PPP projects, including ports, shipyards, airports and tourism ventures. Projects worth Rs 1,23,229 crore are under various stages of execution across industries, infrastructure, urban development, tourism, medical colleges, roads and solar energy.

Naidu directed officials to effectively utilise central government support, including the Urban Challenge Fund, and establish robust mechanisms for managing ports, airports and other major infrastructure projects. He also proposed that coastal tourism projects be designed to benefit local fishing communities by making them stakeholders.

The Chief Minister called for improved public infrastructure and commercial activity around 21 major temples across the state. Officials informed him that the Centre had sanctioned Rs 178 crore in VGF support for waste-to-energy plants at Vijayawada and Tirupati and would provide Rs 1,468 crore in VGF for medical colleges. They added that the Centre's department of Economic Affairs had appreciated Andhra Pradesh's PPP model for medical college construction.

Naidu directed the officials to place the proposed Andhra Pradesh PPP-VGF Policy 1.0 before the next cabinet meeting and issue detailed operational guidelines at the earliest. He also asked them to study various PPP models adopted by the central government.

Officials estimated that AP could attract nearly Rs 8 lakh crore in annual PPP investments to achieve the Swarna Andhra Vision 2047, particularly in the Visakhapatnam, Amaravati and Tirupati Economic Regions. The chief minister instructed departments to align projects with the state's long-term macro and micro development goals while continuously addressing gaps and capitalising on emerging opportunities.

Naidu also asked every government department to prepare comprehensive financial plans with short, medium and long-term revenue strategies to enhance investor confidence. Departments should ensure AP secures a first-mover advantage in emerging sectors, he said.

The Chief Minister directed officials to monetise idle government assets, including commercial utilisation of government land at bus stations, and promote PPP projects in pumped storage and solar energy. He identified mining, tourism, logistics and NEDCAP as sectors with strong revenue potential.

Naidu also proposed expanding the capacity of SC, ST, BC and minority residential hostels by establishing modern residential school townships near urban centres. He said the government's objective was to equip students from weaker sections with world-class skills and prepare them for admission to premier institutions such as the IITs and IIMs.

Finance minister Payyavula Keshav and senior officials from the finance, industries and municipal administration departments attended the review meeting.