The National Apex Committee of the Union Ministry of Housing and Urban Affairs has granted in-principle approval to three Urban Challenge Fund (UCF) proposals submitted by the Greater Visakhapatnam Municipal Corporation (GVMC). The approval was given during a meeting held in New Delhi on May 11.
Project Cost and Funding
The three projects have a total estimated cost of Rs 1,501 crore. Under the UCF scheme, the central government will provide grant support of Rs 375.3 crore, which accounts for 25 percent of the total project cost. The remaining funds will be mobilized through loans from banks such as Canara Bank and Indian Overseas Bank, multilateral agencies, and contributions from GVMC.
Approved Projects
The approved projects include an underground sewerage system in Madhurawada, a 24x7 piped water supply system in the same area, and automation of the city's bulk and semi-bulk water supply network.
Urban Challenge Fund Scheme
The Urban Challenge Fund is a flagship scheme of the Union Ministry of Housing and Urban Affairs. Under this scheme, eligible urban local bodies receive grants covering 25 percent of the project cost for priority infrastructure works. The remaining balance is raised through external funding and local contributions.
State-Level Clearance
The proposals were cleared earlier by the State-level high-power committee chaired by Chief Minister Chandrababu Naidu, with support from Municipal Administration Minister P Narayana and Principal Secretary S Suresh Kumar. GVMC Commissioner Ketan Garg presented the proposals before the National Apex Committee along with Suresh Kumar.
Infrastructure Enhancement
The projects aim to enhance civic infrastructure in the rapidly growing Madhurawada, East, and Bheemili zones by improving water supply, sanitation, and utility management.
Official Statement
Ketan Garg said the approval reflects the city's focus on planned urban development and prudent financial management. He stated, "The projects will ensure 24x7 water supply, an underground sewerage system, and automation of bulk water supply. We thank the Ministry and look forward to implementing them."
Project Details
- Madhurawada drainage system project: estimated cost of Rs 658 crore, with UCF grant support of Rs 164 crore.
- 24x7 Smart water supply project in Madhurawada and adjoining areas: estimated cost of Rs 725.18 crore, with UCF grant of Rs 181.3 crore.
- Automation of bulk and semi-bulk water supply system project: estimated cost of Rs 117 crore, with UCF support of Rs 29 crore.
