No municipal asset privatisation, only PPP projects, says MAUD minister P Narayana

Vijayawada: Municipal administration and urban development (MA&UD) minister P Narayana on Tuesday dismissed allegations that the state government was privatising municipal assets, describing the campaign as completely false and misleading. He clarified that the government was only encouraging municipalities to undertake infrastructure projects through the Public-Private Partnership (PPP) model to strengthen their financial position.

Narayana addressed a two-day workshop on the utilisation of the Urban Challenge Fund (UCF) and mobilisation of loans for municipalities, organised by the Andhra Pradesh Urban Finance and Infrastructure Development Corporation (APUFIDC) in Vijayawada.

Addressing the workshop, Narayana said all PPP projects were being implemented through a transparent tendering process. He explained that under the Urban Challenge Fund, the Centre provides a 25 per cent grant while the remaining 75 per cent has to be mobilised by the state. He said the Centre had allocated Rs 3,600 crore to AP under the scheme, requiring the state to raise an additional Rs 10,800 crore. HUDCO would extend support in mobilising these funds, he added.

The minister said infrastructure projects worth nearly Rs 20,000 crore were currently being implemented in municipalities across AP, with priority being given to the development of essential civic amenities such as drinking water supply, roads and drainage systems.

Narayana further disclosed that projects worth Rs 2,200 crore had already been sanctioned to the state under the Urban Challenge Fund, including proposals for Visakhapatnam and Vijayawada. The government is now preparing an action plan for securing approvals for the remaining projects valued at around Rs 12,000 crore.

The workshop focused on enhancing the financial capacity of urban local bodies and exploring innovative financing mechanisms for urban infrastructure development.

Housing and Urban Development Corporation (HUDCO) chairman and managing director Sanjay Kulshrestha attended the workshop as the chief guest. Principal secretary (MAUD) S Suresh Kumar, director Sampath Kumar and municipal commissioners from across the state participated.