Archive · 8 Aug 2026
AP Approves 177-Home TDR-Backed Slum Redevelopment at Velampeta
In Visakhapatnam, a city in the Indian state of Andhra Pradesh, many families live in a crowded area called the Velampeta slum.
The state government has approved a plan to build them new homes right where they live.
A total of 177 families will get new houses in a tall building that can be up to 45 meters high.
The new homes will have clean drinking water, toilets, electricity, roads, and green spaces.
The city government, called GVMC, will manage the project.
Building companies will be chosen through fair competition and paid with development rights instead of money.
The project is expected to cost about 28.44 crore rupees, with the gap in funding covered through these development rights.
This is one of the first projects of its kind in the state.
If it works well, other cities in Andhra Pradesh may copy it to help more families.
The Andhra Pradesh government approved the Velampeta Slum Redevelopment Project in Visakhapatnam through G.O. Ms. No. 1012 dated August 7 under the VER Programme.
GVMC will build 177 housing units for Economically Weaker Section families in a high-rise complex up to 45 metres on a 0.56-acre site.
The project will be executed under the Design-Build-Finance-Transfer (DBFT) model with developers selected through competitive bidding at a maximum TDR ratio of 1:4.
The estimated project cost is ₹28.44 crore, with about ₹17.07 crore to be bridged through TDR financing alongside PMAY-U 2.0 funding.
The government granted relaxations under the Andhra Pradesh Building Rules, 2017 and set a 24-month completion target, with Velampeta to serve as a pilot for slum redevelopment across the state.
- Who
- The Andhra Pradesh government, the Greater Visakhapatnam Municipal Corporation (GVMC) and its commissioner Ketan Garg, Principal Secretary (Municipal Administration) S. Suresh Kumar, and Municipal Administration Minister Ponguru Narayana.
- What
- Approved the Velampeta Slum Redevelopment Project to build 177 housing units for Economically Weaker Section (EWS) families under the DBFT model with TDR-based financing.
- When
- Announced on Friday, following G.O. Ms. No. 1012 dated August 7.
- Where
- Velampeta slum in Visakhapatnam, Andhra Pradesh; the GVMC-owned site is in Zone-IV, Ward 35, Maharanipeta.
- Why
- To provide permanent homes to EWS families without displacing them from their neighbourhood and to pilot a TDR-based financing model for slum redevelopment under the Visakhapatnam Economic Region Programme.
- Project
- Velampeta Slum Redevelopment Project
- Beneficiaries
- 177 Economically Weaker Section (EWS) families
- Building
- Stilt-plus-12-storey complex, up to 45 metres high
- Land Area
- 0.56-acre GVMC-owned site (about 0.49 acre developable)
- Execution Model
- Design-Build-Finance-Transfer (DBFT)
- Maximum TDR Ratio
- 1:4
- Estimated Cost
- ₹28.44 crore, with a funding gap of about ₹17.07 crore
- Completion Timeline
- 24 months
