The Andhra Pradesh government has approved a new slum redevelopment model beginning with the Velampeta slum in Visakhapatnam, officials said on Tuesday. Led by Chief Minister N Chandrababu Naidu, the initiative seeks to use the value of urban development rights to provide modern housing to existing residents while reducing the direct financial burden on the government.

The Greater Visakhapatnam Municipal Corporation (GVMC) has been authorised to undertake redevelopment of Velampeta Slum in Zone-IV, Ward No. 35 under the Visakhapatnam Economic Region programme. The project will be implemented on a Design, Build, Finance and Transfer basis and will provide 177 housing units on a site measuring 1,986.45 square metres.

A key feature of the model is the use of Transferable Development Rights (TDR) instead of conventional government funding. The successful private bidder will undertake construction in return for TDR, with the government allowing a maximum TDR ratio of 1:4 as the bidding parameter. The project will be awarded through competitive tendering, with bidders required to quote their TDR requirement against the construction cost.

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To make the redevelopment financially viable, the government has approved several relaxations under the Andhra Pradesh Building Rules. These include permission for a high-rise building of up to 45 metres in the congested area, reduced setbacks and parking provision of around 10 per cent of the total built-up area, compared with the normally prescribed 22 per cent. Certain fees and charges payable to GVMC, urban development authorities and other agencies have also been waived.

The government has directed GVMC to complete the Velampeta project within a specified timeframe and use it as a pilot for similar redevelopment initiatives in other slum areas under the Visakhapatnam Economic Region programme. The approach is intended to facilitate in-situ redevelopment, allowing existing residents to receive improved housing without being permanently relocated from their neighbourhoods.

The government has also directed officials to establish a post-allotment management framework covering maintenance of common areas, utilities and building upkeep before the housing units are handed over. Fire safety, energy conservation and other statutory requirements will have to be complied with. Beyond the Velampeta pilot, the Commissioner and Director of Municipal Administration has been asked to prepare a broader policy for slum redevelopment and middle-class housing, potentially creating a framework for expanding the model across Andhra Pradesh.

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