The Union Government is set to sanction ₹14,000 crore to the Andhra Pradesh government under the Urban Challenge Fund (UCF) for state-wide water supply and sanitation projects. Municipal Administration and Urban Development Minister P. Narayana announced the expected allocation on Wednesday during an official visit to Nellore.

The funding will supplement ₹14,000 crore in existing works currently underway to provide safe drinking water to every household in the state. Minister Narayana stated that the additional central assistance would accelerate the completion of critical urban utility infrastructure.

Addressing regional requirements, the Minister confirmed a request for ₹700 crore specifically for the development of Nellore. He dismissed allegations from the YSR Congress Party (YSRCP) regarding the state's financial management, asserting that central fund procurement is at an all-time high.

The state administration further issued a warning against the encroachment of government land, stating that violators would face legal action. The government is expected to begin resolving pending citizen grievances and sanctioning housing plots in the immediate term.