The Andhra Pradesh government has decided to establish a joint venture company called Andhra Pradesh Urban Infrastructure Asset Management Limited (APUIAML) in collaboration with the IL&FS group. The main objective of the new JV company is to attract investments for financing and management of urban infrastructure projects in the state. \u201cWe have issued a GO for establishing a joint venture company called Andhra Pradesh Urban Infrastructure Asset Management Limited (APUIAML) in collaboration with the IL&FS group, and the process of company registration has started,\u201d a senior official from the municipal administration & urban development department told FE. The new JV company will be an asset management urban fund having an equity capital of `20 crore. It will assist urban local bodies (ULBs) in preparing infrastructure projects on commercially viable models. As of now, the government of Andhra Pradesh will hold 49% stake with the rest by IL&FS. Post bifurcation, Andhra Pradesh is facing varied challenges in terms of revenue mobilisation. At present, the urban local bodies in the state require institutional support to meet its infrastructure demands. \u201cThe funds available with the government are also limited to meet the projected demand for urban development in the state. There is an urgent need for such an institutional structure which enables leveraging of the government resources and adequate flow of long-term funds for urban development in the state through accessing of capital markets, commercial banks and financial institutions, private sector arms of multilateral and bilateral financial institutions etc. in the form of loans, equity, grants, etc,\u201d the official said. The initial equity capital of the company is about Rs 20 crore, wherein GoAP would contribute Rs 9.8 crore and IL&FS would contribute Rs 10.2 crore. APUIAML is expected to provide services to the urban housing programmes, making of new capital city of Amaravati, besides project planning, financial structuring, project structuring, debt syndication, loans among others. \u201cThe AMC will also help to leverage further resources through bond issues by urban local bodies attracting private sector investment in urban infrastructure through PPPs, etc. help ULBs in unlocking the potential and monetising their assets and bring financial discipline among the urban local bodies,\u201d the official said. According to the GO, the APUIAML board of directors will initially comprise 10 members which include three members from GoAP, four members from IL&FS and three independent directors. It will draw upon the expertise of different IL&FS group verticals which specialise in areas like project development, fund syndication, project appraisal, fund management etc.