The Andhra Pradesh government has cleared a new redevelopment model for slums, beginning with the Velampeta slum in Visakhapatnam. Taking a leaf from large-scale urban redevelopment models such as Dharavi, the AP government will be leveraging the value of development rights to create modern housing for existing residents while minimising the direct financial burden on the exchequer. The government has accorded permission to the Greater Visakhapatnam Municipal Corporation (GVMC) to redevelop the Velampeta slum in Zone-IV, Ward No. This is expected to create a market-driven mechanism for upgrading valuable urban land while ensuring that existing residents receive proper housing. To make the project viable, the government has also approved a series of special relaxations and exemptions under the Andhra Pradesh Building Rules.