Vijayawada Storm-Water Drain Project Stalled Since 2016, PPP Plan Rejected by Council
February 13, 2026
Vijayawada's storm-water drain project started in 2016 with a 36-month deadline but is still unfinished. The government got ₹461.04 crore from the Centre under 'One Time Special Finance Assistance' for the project. The work was awarded to Larsen and Toubro (L&T) and began on September 1, 2016. The plan was to build drains for 443.77 km in the city. The project was extended until 2022 due to delays. Work slowed from 2019 and stopped in 2022 because L&T was not paid ₹25.97 crore in dues. By then, 59% of the work was done, costing ₹199.51 crore. The unfinished drains have become dangerous for children. Some deadly drains were closed by the Vijayawada Municipal Council (VMC), but many remain open.
On February 10, VMC proposed using a Public Private Partnership (PPP) model to finish the remaining 41% of the project. The total project cost is estimated at ₹600 crore, shared as ₹150 crore by VMC, ₹150 crore by Capital Region Development Authority, and ₹300 crore by the concessionaire. However, the council rejected this annuity model, fearing it would put a financial burden on the corporation. Corporators questioned, "Where will it get the funds from?" suggesting the public would suffer.
An official from the Public Health and Municipal Engineering Department (PHMED) said ₹252.35 crore of the ₹461.04 crore received from the Centre is still unused. To restart work and call fresh tenders, government permission is needed, and dues to L&T must be cleared first. The official revealed, "We have sent revised estimates of around ₹501 crore (including the ₹252.35 crore) to complete the remaining work. We have to wait for the government approval before we go ahead."
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Tags:
Storm-Water Drain
Vijayawada
Larsen & Toubro
Public-private partnership
Municipal Project
Phmed
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