In a landmark development, the Greater Visakhapatnam Municipal Corporation (GVMC) has signed an agreement with the International Finance Corporation (IFC) in the presence of Andhra Pradesh Chief Minister N. Chandrababu Naidu to fund a major infrastructure project worth ₹553 crore. This makes GVMC the first municipal corporation in India to secure a direct loan from IFC.

The project will focus on establishing a modern underground sewerage system in Madhurawada Zone–2 of Visakhapatnam. Of the total cost, ₹498 crore will be provided as IFC loan, while ₹45.64 crore will come from the AMRUT 2.0 scheme, and ₹9.36 crore will be contributed from GVMC’s own funds. The loan, with a tenure of 15 years and an interest rate of 8.15% (floating), will be repaid through GVMC’s own revenue sources.

The project includes the development of a 100% underground sewerage network, modern pumping and lifting stations, advanced sewage treatment plants, and facilities for water recycling and reuse. Designed to meet the needs of the city’s population growth over the next 30 years, the initiative aims to improve public health by preventing groundwater contamination, reducing waterborne diseases, enhancing environmental protection, and ensuring better stormwater management.

Officials highlighted that the project will directly benefit nearly 2.5 crore residents in and around Visakhapatnam. Beyond its immediate impact, the agreement also sets a precedent by opening a new pathway for urban financial autonomy in India, showcasing how cities can leverage global financial institutions for sustainable infrastructure growth.