VISAKHAPATNAM

The Visakhapatnam Economic Region (VER) has started preparations to secure the ₹5,000-crore Central fund allocated under the Union Government’s newly launched City Economic Region (CER) scheme.

Visakhapatnam is the only city from Andhra Pradesh and among the seven urban clusters chosen nationwide for the implementation of the scheme. It is also among the three cities chosen from the South India.

To formalise the State’s approach, a high-level VER delegation led by Chief Executive Officer N. Yuvaraj will meet Chief Minister Nara Chandrababu Naidu at the Secretariat in Amaravati on June 2.

The meeting will focus on securing executive guidance and refining a pitch to convince the Centre that Visakhapatnam is fully equipped to deploy the funds under the scheme’s competitive format.

“We are scheduled to meet the Chief Minister on June 2 and take his guidance before preparing the official draft for the Union government. This is a monumental opportunity to utilise the ₹5,000-crore grant for the comprehensive development of Visakhapatnam Economic Region,” Mr. Yuvaraj, who also serves as the Industries & Commerce Secretary, told to he Hindu on Saturday (May 30).

Mastering the ‘Challenge Mode’

The CER scheme, introduced in the Union Budget, operates on a strict “challenge mode”—a reform-cum-results financing mechanism.

To unlock the ₹5,000 crore over five years, the VER must demonstrate concrete urban reforms, robust execution plans, and measurable economic outcomes.

The funding model treats entire cities as single, unified economic zones rather than isolated municipal pockets.

$125-billion goal

The VER spans over 21,880 square km across nine contiguous districts, from Srikakulam to Dr. B.R. Ambedkar Konaseema. The local administration is aligning its infrastructure pitch with recommendations from NITI Aayog, which has designated the region as a National Growth Hub.

The ultimate blueprint aims to scale the VER into a $125-billion economy by 2032. The ₹5,000-crore grant is expected to serve as the seed capital to improve connectivity, upgrade civic utilities, and build specialised industrial zones that can attract larger private sector investments.

‘Bay City’ vision

The local industry bodies, including the Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers), have noted that the funding aligns perfectly with the maritime strengths of Visakhapatnam.

Key growth drivers identified in the plan include port-led trade, IT innovation hubs, and advanced manufacturing. A major highlight of the pitch includes the development of a Bay City proposed between Kailasagiri and Bheemili. The plan also integrates a “Vizag 2.0” growth corridor extending towards the Bhogapuram International Airport, turning the surrounding landscape into a high-density aerocity.

The CER scheme represents a broader policy shift by the Centre to build up Tier-2 and Tier-3 urban clusters, preventing overcrowding in India’s primary mega-cities.

For Visakhapatnam, the district administration has already flagged nearly 49 specific projects that require urgent capital. Beyond core industrial infrastructure, the funding is expected to support tourism initiatives, including ecologically sustainable trekking trails in the nearby Araku Valley, balancing heavy industrial growth with regional heritage and green spaces.