Visakhapatnam: Madhurawada has evolved into a prominent residential and information technology hub in Visakhapatnam over the past two decades. However, the underground drainage network and several key civic amenities have failed to keep pace with the rapid expansion of the area. Now, the Union government has approved two major infrastructure projects worth approximately Rs 1,400 crore for the zone under the Urban Challenge Fund (UCF).
Approved Projects Under Urban Challenge Fund
Out of nearly Rs 1,500 crore worth of proposals submitted by the Greater Visakhapatnam Municipal Corporation (GVMC) under the scheme, all three received approval from the Centre. The two projects proposed for the Madhurawada region alone account for nearly Rs 1,400 crore. These include an underground drainage (UGD) project extending up to Bheemili and a 24x7 drinking water supply project.
Need for Infrastructure Development
As Vizag city continues to expand northwards with growing investments in IT parks and data centres, these projects are expected to provide much-needed urban infrastructure and reliable water supply facilities to residents. At present, the Madhurawada-Bheemili belt faces water shortages during peak summer months, due to the absence of dedicated water sources and the drying up of the Gosthani river. To address this, the proposed project includes the construction of a 65 MLD water treatment plant equipped with modern treatment and quality monitoring infrastructure.
Similarly, the Madhurawada zone currently lacks an underground drainage system. While the core city areas of Visakhapatnam received UGD infrastructure decades ago, such systems are now being developed in Pendurthi, Malkapuram, and Gajuwaka. This would have left only the Anakapalli region in the south and the Madhurawada-Bheemili corridor in the north without underground sewerage coverage. With the Centre now approving the proposal, a UGD system will be developed up to Bheemili.
Impact on Population and Future Development
The project area has an estimated population of around 2.5 lakh. Since the sewage treatment plant (STP) and associated infrastructure are planned up to Bheemili under the project, officials believe it will also facilitate future development of a comprehensive underground drainage network in the region and enable sewage diversion to the STP.
GVMC commissioner Ketan Garg said the approvals under the UCF would bring 24/7 water supply and underground sewerage infrastructure to the Madhurawada zone. “These projects will significantly improve urban infrastructure and transform the area. They will deliver transformative outcomes across water supply, sanitation, and utility governance for the growing population,” said Garg.
Urban Challenge Fund Scheme Details
Under the UCF scheme, the Ministry of Housing and Urban Affairs provides grants covering 25% of the project cost to eligible urban local bodies and special purpose vehicles for priority urban infrastructure projects. The remaining cost is financed through term loans from domestic banks, multilateral agencies, and contributions from the ULBs.
