Financial institutions are coming forward to finance the construction of Amaravati, the capital of Andhra Pradesh, which was shelved into cold storage during YS Jaganmohan Reddy’s regime.
While both World Bank and ADB have already confirmed to provide Rs 15,000 crore, now the central government undertaking Housing and Urban Development Corporation (HUDCO) has agreed to give a loan of Rs 11,000 crore to AP CRDA.
This approach was given by HUDCO to the Municipal Administration Minister Dr P Narayana, who is on a visit to Delhi. He met HUDCO CMD Sanjay Kulshreshta and discussed the project. KHUDCO expressed satisfaction over CRDA proposals and agreed to give the loan.
The World Bank has already agreed to give a loan of Rs. 15,000 crore for the construction of Amaravati. Soon an agreement regarding this will also be signed between the central government, state government and World Bank and ADB.
Currently, as part of the construction of the capital, government building complexes, Assembly, Secretariat Towers, Raj Bhavan, High Court and other projects are to be constructed in Amaravati. Apart from this, infrastructure needs to be provided in returnable plots of farmers who have been given land through land pooling.
Also, trunk infrastructure like roads, drainage, drinking water facility has to be taken up. It is estimated that the entire construction of Amaravati will cost Rs.54,000 crores. A report has been prepared that Rs.26,000 crores will be required for the first phase of the works.
The coalition government led by Chief Minister Chandrababu Naidu has focused on raising these funds. Soon after release of these funds, the Amaravati works will resume at zet speed from December. On the other hand, the union government is taking up road and rail connectivity to Amaravati at war speed. Land acquisition works were initiated for rail connectivity and construction of new railway lines and also railway stations.
