₹7,470 cr. cleared for infra works in Urban Local Bodies in A.P. under Hybrid Annuity Model
The Andhra Pradesh government has sanctioned ₹7,470 crore for urban infrastructure projects, including roads, drainage, and parks, using the Hybrid Annuity Model (HAM). These projects are part of a larger strategy to bridge infrastructure gaps in 123 urban local bodies by 2029.
Why it matters
The use of the Hybrid Annuity Model demonstrates a shift toward public-private partnerships to fund and maintain essential urban infrastructure in India.
The government accorded administrative sanction for nearly ₹7,470 crore for works related to roads with drains, parks, street lighting, central medians and other development activities in Urban Local Bodies (ULBs) under the Hybrid Annuity Model (HAM).
Principal Secretary (Municipal Administration & Urban Development) S. Suresh Kumar stated in a press release that major projects worth about ₹40,744 crore have been sanctioned, taken up or planned under various schemes and funding mechanisms and HAM was an important part of it.
Of these, 514 projects worth ₹15,274.21 crore are under implementation under AMRUT 2.0, AIIB and UIDF Tranches I and II while new proposals under UIDF Tranches III and IV, Urban Challenge Fund and HAM account for about ₹25,470 crore.
In addition to that, works worth ₹1,176 crore were taken up since 2024 through LRS/BPS, ULB General Funds, UDA funds and Sub-Plan resources.
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