Government issues revised guidelines for urban infrastructure funding

The State government has issued a GO on Thursday, listing down guidelines for the utilisation of funds, realised under the two frameworks of LRS-2020 and BPS-2025, to strengthen urban infrastructure and improving civic amenities across the State.

According to a press release from the Municipal Administration and Urban Development (MA&UD), the government, through the G.O.Ms.No.40, has partially modified earlier orders to streamline fund utilisation under A.P. Regularisation of Unapproved Layouts and Plots Rules, 2020 (LRS-2020), and the A.P. Regulation and Penalisation of Buildings Constructed Unauthorisedly and in Deviation to the Sanctioned Plan Rules, 2025 (BPS-2025).

The revised framework aims at ensuring sustainable and liveable cities and towns, while addressing critical gaps in storm water management, sewerage, sanitation, and environmental infrastructure, according to the press release.

While substantial investments are being made under AMRUT 2.0 scheme for augmentation of water supply, sewerage and rejuvenation of water bodies, significant funding gaps persist in key urban infrastructure sectors.

In this context, funds realised under LRS and BPS, earmarked for developmental purposes, will now be prioritised for storm water drainage works on an annuity model, the press release said.

As per the guidelines, local bodies and Urban Development Authorities (UDAs) shall prioritise storm water drainage works on annuity model, followed by Anna Canteens, Sewerage Treatment Plants, legacy waste clearance and development of cleared legacy waste sites, construction of storm water drains and sewage drains, formation of new master plan roads/link roads, protection and improvement of lakes/ponds, development of area-level recreation facilities, protection and development of layout open spaces and other infrastructure works such as roads and street lighting.

MA&UD Principal Secretary S. Suresh Kumar said the revised guidelines mark a decisive step towards channelising regularisation funds into high-impact urban infrastructure. By prioritising storm water drainage works on an annuity model and strengthening sewerage and waste management infrastructure, the government is addressing the structural deficits in urban infrastructure, he said.