26-05-2025
281 AMRUT 2.0 projects will be taken up with Rs 10,251 cr
Vijayawada: The government accorded administrative sanction for an amount of Rs 10,251.72 crore for the implementation of 281 AMRUT 2.0 Projects works in Urban Local Bodies (ULBs) in the State. The works will be taken up under the Concessionaire Hybrid Annuity Model (CHAM) with the following mode of Finance.
Both the State and Central governments are trying to implement AMRUT 2.0 project schemes to supply drinking water to the people. Andhra Pradesh Urban Finance and Infrastructure Development Corporation (APUFIDC) is the nodal agency for supervising the works. Principal Secretary of the department of Municipal Administration and Urban Development S Suresh Kumar issued orders for the implementation of AMRUT 20 scheme.
The share of the Central government is Rs 2,470.56 crore, while that of the AP government is Rs 2,490.72 crore. Urban Local Bodies share is Rs 590.97 crore; the 15th Finance Commission Grant is Rs 924.78 crore, capital expenditure is Rs 6,477.03 crore, operational expenditure by ULBs is Rs 1,498.97 crore, project cost is Rs 7,976 crore and interest component to concessionaire is Rs 2,275.72 crore. The Total project cost is estimated at Rs 10,251.72 crore. The department of Municipal Administration and Urban Development has adopted Concessionaire Hybrid Annuity Model (CHAM) to implement the AMRUT 2.0. Concessionaire Hybrid Annuity Model (CHAM) is an innovative financing mechanism for undertaking various infrastructure works/ projects (especially, without any revenue from the project operations) that are otherwise dependent on budgetary allocations. This can also be applied to PPP projects requiring major portion of Viability Gap Funding, which can be arranged through CHAM mechanism. The overall objective is to fast track project implementation under new fund flow mechanism of GOI titled 'SNA-SPARSH' for all the Centrally Sponsored Schemes (CSS).
The Government of India has initiated new method of funding called 'SNA-SPARSH' for Central Sponsored Schemes (CSS) wherein, it is mandated for release of matching share of State and ULBs upfront, for tapping/ release of GOI proportionate share. However, due to the critical financial situation of the State, where matching share is not available in the treasury immediately and there is no scope of going for fresh borrowings because of the FRBM limits. In view of this, MA&UD Department devised a new financing mechanism titled 'CHAM' (Concessionaire Hybrid Annuity Model) to use the internally generated project funds and the remaining balance provided by the Contractor/ Concessionaire in the form of 'Concessionaire Support'(C.S.) towards State/ ULB share.
