Andhra Pradesh signs pact with UK for Amaravati, urban infrastructure push
Andhra Pradesh has signed an agreement with the UK for long-term urban and rural infrastructure development, covering Amaravati and 123 municipalities, with potential UKEF financing.
The Andhra Pradesh government has signed an agreement with the UK's Department for Business and Trade to support long-term infrastructure development across the state. The collaboration, formalised on Tuesday, will focus on urban and rural projects, including in the proposed capital city of Amaravati and across 123 municipalities and municipal corporations.
Municipal Administration and Urban Development (MAUD) Minister P Narayana said the partnership will benefit essential infrastructure such as roads, drainage, drinking water supply, and solid and liquid waste management. He added that the UK's technical expertise will help develop Amaravati into a world-class, smart, and livable city.
The agreement follows the state's recent move to re-engage with Singapore, with which it signed an MoU in 2025. Singapore had stepped back from the capital city start-up plan in 2019. Officials clarified that Singapore will continue to support Amaravati's development, while the UK pact is a long-term arrangement with multiple objectives.
The collaboration will emphasise technology transfer and innovation, including Intelligent Transport Systems (ITS), Building Information Modeling (BIM), digital twins, and modern construction techniques. It also covers project planning, financial feasibility assessment, and programme management in line with international standards.
Priority will be given to sustainable urban development, environmental conservation, and efficient urban transport systems, including metro rail, bus services, airport connectivity, and pedestrian infrastructure. The initiative also opens avenues for new financial models, with eligible projects able to explore assistance through UK Export Finance (UKEF), subject to due diligence and specific criteria.
Principal Secretary Suresh Kumar said the ultimate goals are to improve urban connectivity, reduce traffic congestion, control pollution, and provide better public transport facilities. The state currently has infrastructure projects worth Rs 40,000 crore underway across its municipalities.