State Government to adopt green building standards aimed at achieving 40% more energy efficiency in all new city projects, senior official says | Photo credit: Representative image
The Department of Municipal Administration and Urban Development has formulated a comprehensive public-private partnership strategy to strengthen urban infrastructure with an investment of ₹ 66,523 crore by 2029 in 12 thematic areas, including smart water systems, modern transport networks and sustainable housing. The plan excludes the demands of the capital Amaravati. According to a press release issued by Chief Secretary S. Suresh Kumar, an amount of ₹ 2,000 crore has been allocated in this year’s budget to finance the viability gap.
Mr. Suresh Kumar said the government is prioritizing the development of five smart cities with integrated IoT infrastructure, 2,500 kilometers of upgraded roads, 15 new urban transport systems and the adoption of green building standards aimed at achieving 40% higher energy efficiency in all new urban projects.
“We are setting benchmarks to ensure that infrastructure development meets global standards and enhances the urban living experience. These projects will create strong economic momentum and position Andhra Pradesh as one of the fastest growing hubs for urban development in the country with sustainable funding models,” he said.
Mr. Suresh Kumar said the state’s aim is to attract ₹ 35,000 crore FDI in eight new economic zones, which are expected to boost regional development and industrial growth. Innovative funding structures and partnership models have been developed for this purpose. A road map was also prepared for effective implementation and risk mitigation of PPP projects, supported by technology integration and performance monitoring.
The government extended financial incentives to accelerate the implementation of PPPs and used financing from international institutions, municipal bonds and green bonds to ensure timely implementation.
He further said that the ministry has proposed 33 PPP projects across key sectors such as Waste-to-Energy, Urban Mobility, Housing, Tourism and Renewable Energy. Significant progress has been made in implementing Waste-to-Energy projects in Nellore, Rajahmundry, Kakinada, Kurnool, Kadapa, Vijayawada and Tirupati clusters. Major initiatives including MIG housing and Rushikonda land monetization have entered the bidding stage, while several road, solar, mobile and commercial PPPs have reached readiness and feasibility stage.
The state government has also benefited from major Government of India schemes such as the ₹10,000 crore Urban Challenge Fund and the ₹400 crore credit enhancement initiative. It is finalizing the disbursement of nearly ₹2,000 crore for urban reform incentives under the Special Assistance to States for Capital Investment programme, he added.
Published – 23 Nov 2025 19:20 IST
