AP emerging as leader in green urban transformation

 Guntur: “Andhra Pradesh is fast emerging as a national leader in sustainable and climate-resilient urban transformation. Its pioneering approach to financing green infrastructure and sustainable development has drawn widespread national recognition,” according to S Suresh Kumar, principal secretary, Municipal Administration and Urban Development.

At the International Council for Local Environment Initiative (ICLEI)–Adapative Resilient Innovative Sustainable Equitable (ARISE) event held in New Delhi on Thursday, Suresh Kumar showcased the state’s comprehensive strategy to integrate sustainability into every level of urban planning, fiscal policy, and governance.

Suresh Kumar said, “A key highlight of AP’s reforms is the nation’s first fiscal incentive policy for green buildings. Under this policy, projects certified by the Indian Green Building Council (IGBC) are eligible for Impact fee discounts ranging from 5% to 15%, and registration fee refunds between 10% and 20%, depending on their IGBC rating. This makes AP the first state in India to link fiscal incentives directly with environmental performance, thus encouraging private investment in green construction.”

Dedicated budget allocations now support initiatives such as urban afforestation, stormwater management improvements, coastal protection, and expansion of green public spaces.

To strengthen financing for sustainable infrastructure, the state has expanded partnerships with international and domestic financial institutions,” he said.

“The World Bank and Asian Development Bank are supporting major climate-resilient urban infrastructure projects. HUDCO is being leveraged for housing and infrastructure finance. A major milestone was achieved when Rajamahendravaram became one of the first cities in India to issue municipal bonds, enabling urban local bodies to directly access financial markets. The government is also promoting Public-Private Partnerships to attract private capital, technology, and expertise for sustainable urban projects. ULBs are being encouraged to secure credit ratings to build financial credibility and attract diversified funding,” he added.