Andhra Pradesh sanctions ₹7,470 crore for urban infrastructure under HAM

The Andhra Pradesh government has accorded administrative sanction for urban infrastructure works worth nearly ₹7,470 crore in Urban Local Bodies (ULBs) under the Hybrid Annuity Model (HAM). The projects cover roads with drains, parks, street lighting, central medians and other development activities.

Principal Secretary (Municipal Administration & Urban Development) S. Suresh Kumar said in a press release that major projects totalling around ₹40,744 crore have been sanctioned, taken up or planned under various schemes and funding mechanisms, with HAM forming a significant part. Of these, 514 projects worth ₹15,274.21 crore are under implementation under AMRUT 2.0, AIIB and UIDF Tranches I and II. New proposals under UIDF Tranches III and IV, Urban Challenge Fund and HAM account for about ₹25,470 crore. In addition, works worth ₹1,176 crore have been taken up since 2024 through LRS/BPS, ULB General Funds, UDA funds and Sub-Plan resources.

Mr. Kumar said the preparation of gap assessment reports and infrastructure investment plans for all 123 ULBs — covering existing infrastructure, requirements up to 2029 and the residual gap to be bridged — is a key element of the government's urban development strategy. The HAM programme aims to bridge the identified urban road infrastructure gaps while simultaneously improving drainage, lighting, medians and public spaces.

Of the ₹5,500 crore capital works component within the total sanctioned amount, ₹4,656 crore is earmarked for roads with drains, ₹510 crore for parks, ₹247 crore for street lighting and ₹88 crore for central medians. Under HAM, a public-private partnership model, the concessionaire finances and builds the assets, and the government repays the concessionaire-financed component over 10 years through 40 quarterly instalments. These repayments are made through an escrow account supported by identified urban-sector revenues, including LRS/BPS receipts, development approval fees and MIG/LIG layout revenues.

The model also provides for 10 years of operation and maintenance by the concessionaires, ensuring continued upkeep of the assets after construction. To monitor progress, a technology-based system has been put in place for tracking physical and financial status, geo-tagged photographic evidence, milestones, quality control data, material test results, third-party quality audits and early identification of delays, Mr. Kumar added.

The administrative sanction is expected to accelerate infrastructure development in urban local bodies across the state, addressing critical gaps in basic amenities and supporting planned urban growth. The projects will be tendered and implemented by the respective ULBs, with oversight from the state government.