The sanction was formalised through G.O.Rt.No.1067 issued by the Municipal Administration and Urban Development Department on August 19, 2026, and the outlay comprises Rs 55 bn for core capital works and Rs 19.69 bn to meet estimated interest obligations over 10 years.
The package forms part of a Rs 407.44 bn urban infrastructure pipeline being executed or planned across all 123 Urban Local Bodies (ULBs) in line with the Chief Minister’s Swarna Andhra 2047 vision.
Gap assessments and infrastructure investment plans prepared for every ULB set out detailed requirements for water, sewage, drainage and roads.
These identify 724 million (mn) litres a day (MLD) of water-treatment capacity, 9,608 km of water-distribution lines, 1,443 MLD in sewage-treatment capacity, 19,081 km of underground drainage and 23,612 km of storm-water drainage, alongside the remaining 4,388 km of unbuilt or un-upgraded urban roads.
The documents cover needs up to 2029 and underpin the prioritisation of projects across the state.
The HAM package is aimed specifically at closing the urban road gap by upgrading the remaining 4,388 km and taking the state’s total 25,626 km urban road network to full completion.
Within the Rs 55 bn capital component, allocations include Rs 46.56 bn for roads with integrated drains, Rs 5.09 bn for 541 neighbourhood parks, Rs 2.47 bn for 20,340 street-lighting points and Rs 877.8 mn for 1,186.56 km of medians.
Implementation will be coordinated through the relevant urban bodies to ensure integrated delivery.
Under the financing structure, 40 per cent of the capital cost, or Rs 22 bn, will be provided upfront from LRS and Building Penalty Scheme funds managed by the Directorate of Town and Country Planning.
The remaining 60 per cent, or Rs 33 bn, will be funded by the concessionaire and repaid over 10 years in 40 quarterly instalments through an escrow account backed by urban revenues, with a mandatory 10-year Operation and Maintenance (O&M) obligation.
Officials said the broader Rs 407.44 bn framework combines Rs 152.74 bn from ongoing projects and Rs 254.69 bn in new proposals, plus Rs 11.76 bn mobilised locally since 2024.