File Photo: Aerial view of the slums in Kajupada area, Mumbai | Photo Credit: TRUPTI AREKAR

The Andhra Pradesh government has cleared a new redevelopment model for slums, beginning with the Velampeta slum in Visakhapatnam.

Taking a leaf from large-scale urban redevelopment models such as Dharavi, the AP government will be leveraging the value of development rights to create modern housing for existing residents while minimising the direct financial burden on the exchequer.

The government has accorded permission to the Greater Visakhapatnam Municipal Corporation (GVMC) to redevelop the Velampeta slum in Zone-IV, Ward No. 35 under the Visakhapatnam Economic Region (VER) Programme on a Design, Build, Finance and Transfer (DBFT) basis.

The project will accommodate 177 housing units on a compact site measuring just 1,986.45 sq metres, through construction of a high-rise residential complex of up to 45 metres.

A key feature of the model is that instead of relying entirely on conventional government funding, the successful private bidder will undertake redevelopment against Transferable Development Rights (TDR).

The government has permitted a TDR ratio of up to 1:4 as the maximum bidding parameter, with the project to be awarded through a competitive tender process. The bidder will quote the TDR requirement competitively in lieu of the construction cost.

This is expected to create a market-driven mechanism for upgrading valuable urban land while ensuring that existing residents receive proper housing.

To make the project viable, the government has also approved a series of special relaxations and exemptions under the Andhra Pradesh Building Rules.

These include permission for a high-rise complex in a congested area, reduced setbacks, parking provision of around 10 per cent of the total built-up area against the normally prescribed 22 per cent, as well as waiver of specified fees and charges payable to GVMC, urban development authorities and other agencies.

The government has directed GVMC to execute the Velampeta redevelopment in a time-bound manner and treat it as a pilot project for replication in other slum pockets under the Visakhapatnam Economic Region Programme.

The initiative could therefore pave the way for a much larger programme of in-situ redevelopment across Visakhapatnam, where residents can receive modern housing without being permanently displaced from their existing neighbourhoods.

The government has also insisted on a post-allotment management framework covering maintenance of common areas, utilities and upkeep of the buildings before possession is handed over to beneficiaries. Fire safety, energy conservation and other statutory requirements will have to be fully complied with.

Moving beyond the Velampeta pilot, the government has also directed the Commissioner and Director of Municipal Administration to prepare a draft policy for slum redevelopment and middle-class housing, in consultation with all stakeholder departments, according to a release.

Published on August 11, 2026