Vijayawada: Chief minister N Chandrababu Naidu on Thursday said viability gap funding (VGF)-backed public-private partnership (PPP) projects will be central to the state’s long-term development strategy. He directed officials to draft a new PPP-VGF Policy 1.0 and present it for cabinet approval at the next meeting.During a review meeting with senior officials, Naidu assessed the progress of PPP projects across key sectors. Officials informed him that 260 PPP projects worth ₹1.23 lakh crore are currently under implementation in sectors including ports, shipyards, airports, tourism, medical colleges, roads, and solar energy.Naidu stressed that all PPP projects should be based on sustainable business models capable of generating long-term economic activity and revenue. He also asked departments to leverage central initiatives such as the Urban Challenge Fund and improve the management of infrastructure assets like ports, airports, and tourism facilities.Officials said the Centre has approved ₹178 crore in viability gap funding for waste-to-energy plants in Vijayawada and Tirupati. Additionally, PPP-based medical college projects are expected to receive ₹1,468 crore in VGF support. The Centre’s department of economic affairs has appreciated Andhra Pradesh’s implementation of medical colleges under the PPP model, they informed.The CM instructed officials to finalize the proposed policy and issue detailed implementation guidelines after cabinet approval. According to officials, the state could attract annual investments of up to ₹8 lakh crore through the PPP route, particularly across the Visakhapatnam, Amaravati, and Tirupati economic regions, in line with the ‘Swarna Andhra 2047’ vision.Naidu further directed every government department to prepare short-, medium-, and long-term financial plans with clear revenue strategies. He said PPP projects should be structured to enhance investor confidence and provide Andhra Pradesh with a competitive first-mover advantage.In another key decision, Naidu called for the monetisation of underutilised government assets, including exploring commercial development opportunities on government land attached to bus stations. He also proposed implementing pumped storage and solar power projects through the PPP model. Further, he asked officials to prepare an action plan for establishing residential school townships in urban areas, with the aim of improving educational infrastructure and creating skilled human resources among SC, ST, BC, and minority communities.Finance minister Payyavula Keshav and senior officials from the finance, industries, and municipal administration departments attended the review meeting.
