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The Andhra Pradesh Cabinet approved the draft AP Public-Private Partnership Policy-2026 and the draft AP Omnibus (Ease of Doing Business) Act, 2026 on 6 August 2026.
The Cabinet met at Amaravati under Chief Minister N. Chandrababu Naidu.
₹1,500 crore was earmarked under the Viability Gap Funding scheme for PPP projects.
A Bridge Fund was proposed for projects not financially viable initially but with long-term revenue potential.
The Cabinet also cleared measures on pedestrian safety, quantum infrastructure and aquaculture subsidy, and withdrew the Andhra Pradesh Disha Bill, 2019.
Many infrastructure projects are economically valuable but commercially unviable — a rural road or a small port may generate large social benefits while never earning enough revenue to repay private capital. Viability Gap Funding closes that gap with a government grant that covers part of the capital cost, so the project becomes attractive to a private developer without the state having to build and operate it itself. The Bridge Fund proposed here addresses a different timing problem: projects that will eventually generate revenue but cannot cover costs in their early years. Both instruments exist because the alternative — full public funding — competes with every other demand on the state budget.
Simple Analogy: Viability Gap Funding is like a subsidy that makes a loss-making bus route worth running. A bridge fund is more like a loan that carries the operator through the first lean season until passengers arrive.
GS Paper 3 > Infrastructure — investment models, PPP; GS Paper 2 > Government policies and interventions
General Awareness > State policies and economy
General Awareness > Infrastructure financing and Viability Gap Funding
General Awareness > Economy and infrastructure
A model in which public authorities and private entities share the responsibilities, risks and returns of an infrastructure project.
A government grant covering part of a project's capital cost to make an economically desirable but commercially unviable project attractive to private investors.
A single law that consolidates and amends numerous existing statutes at once, used to accelerate regulatory reform.
A fund proposed to support projects that are not financially viable in their initial years but have long-term revenue potential.