PPP Projects to Drive AP’s Growth, Says CM Naidu
Vijayawada:Chief Minister N. Chandrababu Naidu on Thursday said Viability Gap Financing (VGF)-backed Public-Private Partnership (PPP) projects will be the cornerstone of Andhra Pradesh’s future development.
While reviewing the state’s PPP projects and spending with senior officials on Thursday, he maintained that rapid economic growth can only be achieved through greater cooperation between the government and the private sector.
The Prime Minister said India had witnessed economic reforms in the past, but the country is now seeing an infrastructure revolution. He underlined the need to develop all PPP projects on a sustainable model with built-in opportunities for economic activity and income generation.
Officials informed the Prime Minister that the state is currently implementing 260 PPP projects, including ports, shipyards, airports and tourism initiatives. Projects worth Rs 1,23,229 billion are at various stages of implementation in industries, infrastructure, urban development, tourism, medical colleges, roads and solar energy.
Naidu directed officials to effectively leverage central government support, including the Urban Challenge Fund, and create robust mechanisms to manage ports, airports and other major infrastructure projects. He also suggested that coastal tourism projects be designed to benefit local fishing communities by making them stakeholders.
The Chief Minister called for improvement of public infrastructure and commercial activities around 21 major temples across the state. Officials informed him that the Center has approved Rs 178 billion in VGF support for waste-to-energy plants in Vijayawada and Tirupati and will provide Rs 1,468 billion as VGF for medical colleges. They added that the Centre’s Economic Affairs department appreciated Andhra Pradesh’s PPP model for medical college construction.
Naidu directed officials to put the proposed Andhra Pradesh PPP-VGF Policy 1.0 in the next cabinet meeting and issue detailed operational guidelines at the earliest. He also asked them to examine various PPP models adopted by the central government.
Officials have estimated that AP can attract around Rs 8 lakh crore from annual PPP investments to achieve Swarna Andhra Vision 2047, especially in Visakhapatnam, Amaravati and Tirupati Economic Zones. The Chief Minister instructed the departments to align projects with the long-term macro and micro development goals of the state, while continuously addressing gaps and capitalizing on emerging opportunities.
Naidu also asked every government department to prepare comprehensive financial plans with short, medium and long-term revenue strategies to boost investors’ confidence. He said ministries should ensure that the EP secures first mover advantage in emerging sectors.
The Prime Minister instructed officials to monetize idle state assets, including commercial use of state land at bus stations, and promote PPP projects in pumped storage and solar power. It identified mining, tourism, logistics and NEDCAP as sectors with strong revenue potential.
Naidu also suggested expanding the capacity of SC, ST, BC and minority boarding houses by setting up modern residential school districts near urban centres. He said the government’s aim is to equip students from weaker sections with world-class skills and prepare them for admission in premier institutions like IITs and IIMs.
Finance Minister Payyavula Keshav and senior officials from finance, industry and municipal administration departments attended the review meeting.
