AP to borrow Rs.65k cr to build Amaravati

The Andhra Pradesh government has decided to borrow about Rs.65,000 crore from foreign and domestic financial institutions to construct the capital city, Amaravati. The state finance department has given its nod for an expenditure of Rs.64,958 crore on capital infrastructure in three phases.
In the first phase, it was proposed to spend Rs.4,749 crore on infrastructure in Amaravati. The government will borrow Rs.3,324 crore from the World Bank. The Amaravati infrastructure development project has already received the clearance of AP government and the World Bank.Now a formal approval from the Centre is required to raise the money . Under this project, development of water and sewerage infrastructure, telecommunications, solid waste management and fire hydrant network will be taken up.
Another project named as “development of inner ring road ­ phase 1“ has been presented to the Asian Infrastructure and Investment Bank (AIIB).The project was approved by the AIIB. An inner ring road will be developed at an estimated cost of Rs.3,930 crore. The AIIB will fund Rs.2,751 crore.All clearances have been obtained from the Centre for this project.
Transport infrastructure, electricity, gas supply and flood management will be funded by the Housing and Urban Development Corporation (Hudco). The total cost of the project is Rs.7,500 crore. Of this, the Hudco will bear Rs.6,750 crore.The project has received approval of the state cabinet and finance department. Chief minister N Chandrababu Naidu will make a formal announcement soon. Apart from these, the state government has proposed a riverfront development project.The total cost of the project is Rs.1,250 crore. It also plans to develop green zones at a cost of Rs.4,250 crore. The government has proposed to spend Rs.3,000 crore on infrastructure. It has earmarked Rs.17,500 crore for development of layout and infrastructure in 24 villages, where land pooling was taken up.
“The Union government has already agreed to release loan from Hudco. AP government needs to share 10 per cent of the total expenditure as Hudco will fund up to 90 per cent of the project cost. We are borrowing loans from external agencies at low interest rate and long repayment schedule,“ said an official in the finance department.
The state government will need Rs.10,500 crore for construction of all government buildings.

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