The eight key projects to be undertaken in the Andhra Pradesh capital Amaravati will be implemented under a Special Purpose Vehicle (SPV). On Tuesday, the Andhra Pradesh Municipal Department issued a Government Order (GO) establishing the SPV, in accordance with company laws. The GO outlines the projects to be undertaken under the SPV. These include the Greenfield Airport, NTR Statue, Smart Industries, Iconic Bridge, Sports City, River Front Development, Ropeway, and Inner Ring Road (IRR) projects in Amaravati. Additionally, any newly identified projects will also be brought under this SPV, as per the announcement. Under the recommendations of the APCIDRA or SPV, the company selected for the projects will be directly allocated land. Furthermore, the government will issue directives to grant rights over these lands for the purpose of project implementation, land acquisition, and fund mobilization.
At the same time, aspects like tariffs, user fees, and revenue-sharing related to these developed projects will be decided in collaboration with the APCRDA. The project finance model under the SPV will determine aspects such as equity, loans, grants, and, where necessary, viability gap funding (VGF). The proposed projects will be carried out under models like Public-Private Partnership (PPP), Build-Operate-Transfer (BOT), Hybrid Annuity, and EPC, as stated in the GO. Although the land acquisition proposal under the Amaravati Expansion Project has been temporarily sidelined, this GO signals that additional land acquisition will be necessary for key projects such as the airport and sports city.