World · India Bureau
Naidu inaugurates ₹11,359-crore urban development push across 123 towns
Andhra Pradesh's urban local bodies will undertake major infrastructure work spanning roads, parks and sewerage systems across 26 districts. The projects mark the first large-scale implementation of a hybrid annuity model for municipal development.
LSN India ·
Chief Minister N. Chandrababu Naidu laid the foundation for infrastructure works valued at ₹11,359 crore across 123 urban local bodies in Andhra Pradesh, signalling a significant push to modernise municipal services in smaller towns and cities. The projects will be executed for the first time under a hybrid annuity model, a financing arrangement intended to improve project efficiency and financial sustainability.
The comprehensive infrastructure programme spans 26 districts and includes construction of 2,165 kilometres of roads, development of 502 parks, and laying of 300 kilometres of sewerage lines. These works represent a substantial commitment to urban renewal, focusing on essential services that directly impact quality of life in tier-II and tier-III cities.
The initiative coincides with improved connectivity to the region, with the Kuppam railway station now receiving two additional train services. The expanded rail connectivity is expected to facilitate easier access to these urban centres and support economic activity in the smaller towns benefiting from the infrastructure upgrades.
The hybrid annuity model employed for these projects represents a departure from traditional execution methods, combining elements of performance-based contracts with structured financial mechanisms. Officials believe the approach will ensure timely completion while maintaining fiscal discipline across the multiple municipal corporations and town councils involved.