The Andhra Pradesh government has approved 281 urban infrastructure projects under the AMRUT 2.0 scheme with an estimated cost of ₹10,319 crore. These projects focus on improving drinking water supply, sewage treatment, and urban amenities across the state. The works will be implemented using the Concessioner Hybrid Annuity Model (CHAM).
The project budget allocates ₹6,477 crore for capital expenditure, ₹1,499 crore for operations over ten years, and ₹2,344 crore for interest payments. Tenders will be invited according to the 2025-26 Standard Schedule of Rates (SSR). The Public Health Engineering Department has been authorized to execute the works.
The CHAM model ensures that 60% of project funds are contributed by private concessioners, who will be repaid by the state government over ten years along with interest. The remaining 40% of funds will come from local bodies and the 15th and 16th Finance Commission allocations. This approach avoids the previous 7.5% deduction in bills faced by contractors.
AMRUT 2.0 aims to complete pending urban development works under the earlier AMRUT scheme. Projects include water supply, sewage systems, and urban parks. The program is designed to modernize cities and ensure sustainable infrastructure for residents.
