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The Andhra Pradesh government has approved the redevelopment of the Velampeta slum in Visakhapatnam under the Visakhapatnam Economic Region programme, clearing the way for the state’s first major integrated in-situ slum redevelopment project under the initiative. The Greater Visakhapatnam Municipal Corporation will implement the project on a Design, Build, Finance and Transfer basis, with 177 housing units planned on a 1,986.45 sq m site. The project will use transferable development rights to make redevelopment financially viable and is intended to serve as a pilot for similar projects elsewhere.
The Andhra Pradesh government has approved the redevelopment of the Velampeta slum in Visakhapatnam, clearing the way for a pilot project under the Visakhapatnam Economic Region (VER) programme. The initiative is intended to provide permanent housing to existing residents while demonstrating a redevelopment model that can potentially be applied to other slum clusters across the region.
An order issued by the state’s Municipal Administration and Urban Development Department has authorised the Greater Visakhapatnam Municipal Corporation (GVMC) to undertake the project on a Design, Build, Finance and Transfer (DBFT) basis. The development will come up on a 1,986.45 sq m site in Ward 35, Zone-IV, with a high-rise building of up to 45 metres planned for the site.
The approved plan provides for 177 housing units for families currently living in the Velampeta settlement. The project is designed as an in-situ redevelopment, allowing eligible residents to remain within the same locality rather than being shifted away from their existing social and economic networks. The earlier project details indicate that the settlement comprises 177 economically weaker section families.
The redevelopment will be taken forward through a competitive bidding process. GVMC will invite Expressions of Interest (EOI) from private developers, with Transferable Development Rights (TDR) forming the key financial mechanism. The government has fixed a 1:4 TDR ratio as the maximum bidding parameter, allowing developers to compete by quoting the TDR required to undertake the project.
The project is being structured to address the financial challenge associated with redeveloping slums on valuable urban land without placing the entire cost on public funds. The approved model combines in-situ rehabilitation, vertical development and private-sector participation, while using TDR to bridge the project’s financing requirements.
To enable construction on the constrained site, the state government has approved certain relaxations under the Andhra Pradesh Building Rules, 2017, along with subsequent amendments. These include provisions for high-rise construction in congested areas, reduced setbacks and lower parking requirements. The approved setbacks include 3 metres at the front and rear and 5 metres at the sides, while parking has been permitted at around 10% of total built-up area, compared with the prescribed 22%.
The government has also approved exemptions from certain fees and charges payable to GVMC and other urban development authorities, while a green-fee exemption has been proposed. The civic body has been directed to monitor implementation and submit quarterly progress reports to the government.
The project is expected to be completed within 24 months of signing the agreement. Before the houses are handed over, GVMC must finalise arrangements for maintaining the building, common areas and utilities. The project must also comply with fire-safety requirements under the Andhra Pradesh Fire Safety Act, 2026, the Energy Conservation Building Code and other applicable regulations. An Airport Authority of India clearance will also be required before construction because of the proposed building height.
The government has directed that the Velampeta project be treated as a pilot for redevelopment of other eligible slum areas under the VER programme. It has also asked the municipal administration to prepare a draft policy covering slum redevelopment and middle-class housing in consultation with relevant departments.
GVMC Commissioner Ketan Garg said the project is intended to provide modern housing along with drinking water, sanitation, electricity, internal roads and community amenities, with the objective of transforming Velampeta into a model residential neighbourhood.