Guidelines Issued For Proper Utilisation Of Urban Funds

: The Andhra Pradesh government has issued comprehensive guidelines to facilitate the utilization of funds realized under LRS-2020 and BPS-2025, prioritizing critical urban infrastructure such as storm water drainage, sewerage and legacy waste management.

through GOMs. 40 of February 26, 2026, the Municipal Administration and Urban Development (MA&UD) department partially amended previous orders to align the use of funds with urgent civil needs. The movement aims to promote sustainable, liveable cities while addressing persistent gaps in drainage, sanitation and environmental infrastructure.

Chief secretary S. Suresh Kumar said the rules ensure transparent, accountable and time-bound use of regulatory funds to strengthen drainage, sanitation and environmental protections across the state.

Although significant investments are ongoing for water supply, increased sanitation and rejuvenation of water bodies under AMRUT 2.0, officials have highlighted financing gaps in key sectors. Accordingly, LRS and BPS funds allocated for development purposes will now give initial responsibility to rainwater drainage works and projects secured by the Prime Minister, with an annual revenue model.

Local bodies and urban development authorities, including CRDA, VMRDA, VKPCPIR UDA and IALA, have been directed to follow a clear order of priorities. Following the stormwater studies and the Prime Minister’s assurances, the focus will shift to the layout of Anna Canteens, sewage treatment plants, clearing of old waste and site development, construction of storm and sewer drains, a new master plan and connecting roads, lake and pond protection, recreational facilities and open spaces.

Other works, such as roads and street lighting, require prior government approval. The government also revised the sharing model. Under LRS, rural funds will be divided between UDA (30%), gram panchayat (50%) and DTCP (20%); In urban areas, UDA will get 10%, ULB 25% and DTCP 65%. Rural allocation under BPS will be UDA 15%, GP 70% and DTCP 15%; urban share remains 10%, 25% and 65% respectively.