The Ministry of Housing and Urban Affairs (MoHUA) National Apex Committee (NAC) has accorded in-principle sanction to three major Urban Challenge Fund (UCF) projects worth Rs 15.0103 bn for Visakhapatnam aimed at underground drainage, round-the-clock drinking water supply and automation of the city's water distribution system. The approvals were granted at the NAC meeting in New Delhi on May 11 and the proposals were submitted by the Greater Visakhapatnam Municipal Corporation (GVMC) and the Greater Visakhapatnam Smart City Corporation Limited (GVSCCL). GVMC commissioner and GVSCCL managing director Ketan Garg said the portfolio covers the Madhurawada growth corridor and adjoining zones.

Under the UCF scheme MoHUA will provide a grant of Rs 3.7526 bn, accounting for 25 per cent of the total project cost, with the remainder to be met through loans and municipal contribution. Loans are expected from the International Finance Corporation (IFC), Canara Bank and Indian Overseas Bank and the GVMC will contribute to the balance of funding. The proposals had been vetted and approved by the State Level High Power Committee chaired by Chief Minister N Chandrababu Naidu and including the Municipal Administration and Urban Development Minister P Narayana and Principal Secretary S Suresh Kumar.

The Madhurawada underground drainage scheme is estimated at Rs 6.5861 bn and will be financed through a 75 per cent IFC loan with the remaining 25 per cent met by the UCF grant. The project will construct a 401-km sewer network and a 20 MLD sewage treatment plant based on Sequential Batch Reactor (SBR) technology with tertiary treatment capability. Household sewer connections will be provided across the growth corridor to improve sanitation and environmental outcomes.

The round-the-clock water supply is estimated at Rs 7.2518 bn. It will include a 65 MLD plant and AMI smart connections. Automation is estimated at Rs 1.1724 bn overall.