Andhra Pradesh has approved 14 projects worth ₹5,912 crore under Phase 2 of the Urban Challenge Fund, focusing on improving infrastructure across major economic regions.
The package includes ₹1,800 crore for 25 ULBs in the Amaravati Economic Region, ₹1,231 crore for 23 ULBs in the Tirupati region, and ₹867.70 crore for 11 ULBs in the Visakhapatnam region.
Major city projects include ₹600 crore for Vijayawada stormwater drains, ₹300 crore for Guntur sewerage, ₹240 crore for Rajamahendravaram riverfront and urban development, and ₹200 crore for treated wastewater supply to industries in Nellore.
The funding model proposes 25% Central grant, 50% through municipal bonds/PPP and 25% from Urban Local Bodies, supporting better drainage, sewerage, water management and urban infrastructure across Andhra Pradesh.

