The southern Indian state introduces a new PPP policy and ₹1,500 crore viability gap fund to attract private investment and fast-track projects across transport, healthcare, energy, and urban infrastructure sectors as part of its Swarna Andhra Vision 2047 initiative.
Andhra Pradesh has set out a new public-private partnership policy aimed at drawing in large-scale private capital and speeding up infrastructure work as part of its Swarna Andhra Vision 2047, according to the Deccan Chronicle. The state says it already has a pipeline of PPP projects worth about ₹1.23 lakh crore, with transport, logistics, ports, airports, urban infrastructure, healthcare, education, industry, renewable energy and tourism among the main priorities.
The policy also sets aside ₹1,500 crore in state viability gap funding for 2026-27, a support mechanism designed to help close financing shortfalls and improve the viability of projects that might otherwise struggle to attract investors. According to the report, the government expects the fund to make large schemes more bankable and to strengthen private sector participation in sectors that typically require heavy upfront investment.
The new policy builds on earlier moves by the state to widen the use of the PPP model. In May, Andhra Pradesh became the first state to issue dedicated operational guidelines for urban infrastructure projects under the framework, with municipal administration minister Ponguru Narayana saying the rules were intended to create investor-friendly, financially sustainable cities. The broader push reflects a longstanding state effort, dating back to the Andhra Pradesh Infrastructure Development Enabling Act 2001, to use private participation to design, finance, build and operate infrastructure more quickly.
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