YK TV @ Internet Desk
The Greater Visakhapatnam Municipal Corporation (GVMC) has secured $60 million (about Rs 498 crore) from the International Finance Corporation (IFC), part of the World Bank Group, to develop a modern sewerage system in Madhurawada.
A trust deed was signed at the State Secretariat on Monday by GVMC Commissioner Ketan Garg and IFC Asia Head Victoria Delmon, in the presence of Chief Minister N. Chandrababu Naidu and Municipal Administration and Urban Development (MAUD) Principal Secretary Suresh Kumar.
Madhurawada, home to more than 2.5 lakh residents, has faced years of poor sanitation, with untreated wastewater frequently flowing into local water bodies. The proposed project aims to build a comprehensive underground sewer network, lift and pumping stations, and a sewage treatment plant to serve the area’s growing population for the next three decades.
Transformative step for urban India
Suresh Kumar described the IFC partnership as a milestone for Indian cities. “This project is not only about sanitation—it is about creating a model of sustainable and financially disciplined urban growth. We are proving that cities can attract global capital without sovereign guarantees,” he said.
IFC Managing Director Makhtar Diop said the agreement illustrates how municipalities can leverage private funds for essential services. “This first-of-its-kind municipal financing will protect the coastline, generate jobs, and push low-carbon growth. What India is piloting here can inspire cities worldwide to reimagine urban development,” he noted.
The overall project cost is estimated at Rs 553 crore. Of this, Rs 498 crore will be raised through IFC-issued non-convertible debentures (NCDs), while the remaining Rs 55 crore will come from the Centre’s AMRUT 2.0 scheme and GVMC’s own resources. The 15-year loan includes a three-year moratorium on principal repayment, followed by 12 years of repayment at an annual interest rate of 8.15%.
Coverage to reach 100% by 2030
According to Commissioner Garg, Madhurawada’s sewerage network currently covers only 20% of households. The IFC funding will support a 400-km expansion of the system and the phased construction of a 38 MLD sewage treatment plant. The first phase, with 20 MLD capacity, is set to begin operations in 2028 and expand to full capacity by 2043, covering nearly 82,900 households.
GVMC also plans to add wastewater recycling and reuse components in the later phases to conserve freshwater resources, particularly for industrial and commercial users.
Officials said the project will improve public health, enhance environmental protection, boost property values, and attract further investments to Visakhapatnam while strengthening climate resilience.
