Out of this, the central assistance to would be to the tune of Rs 2,085 crore, an official statement said.
An inter-ministerial Apex Committee, chaired by Urban Development Secretary Rajiv Gauba, has approved the State Level Annual Action Plans (SAAP) of these eight states/UTs, it said.
The government has increased the grant, for improvement in drainage network in urban areas, from Rs 281 crore in last fiscal to Rs 759 crore this year.
The amount of Rs 4,404 crore approved today would be used for augmenting water supply, sewerage networks, drainage, urban transport and public and green spaces in urban areas in these areas, it said.
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States and UTs for which investment approved include Karnataka (Rs 1,625 crore), Andhra Pradesh (Rs 877 crore), Bihar (Rs 775 crore), Telangana (Rs 555 crore), Haryana (Rs 525 crore), Nagaland (Rs 40 crore), Dadra and Nagar Haveli (Rs 3.70 crore) and Andaman & Nicobar Islands (Rs 3.18 crore).
Total cost of the two UTs--Dadra and Nagar Haveli and Andaman & Nicobar Islands--would be borne by the Centre, it said.
Gauba said the States/UTs that AMRUT Action Plans for the next three years would be cleared in the last quarter of this financial year.
Under AMRUT, lauched in June last year, the Centre will provide an assistance of Rs 50,000 crore for the five year mission period to the states/UTs.
Under the scheme, the total investment approved in basic infrastructure in urban areas in 500 mission cities stands at Rs 44,401 crore with total central assistance commitment of Rs 20,634 crore.