AP Govt requires Rs.7300 Cr for Amaravati Development

Amaravati, Aug 03: The Andhra Pradesh Chief minister Chandrababu Naidu held a review meeting with Capital Region Development Authority (AP-CRDA) officials here on Wednesday.

CRDA is looking for avenues to raise Rs. 7,300 crore for creation of infrastructure and other developmental works in the capital city Amaravati out of the requirement of Rs. 30,000 crore for three years.

CRDA Commissioner Cherukuri Sreedhar told Chief Minister N. Chandrababu Naidu at a review meeting on Wednesday that Rs. 22,700 crore had been tied up with the HUDCO (Rs. 7,500 crores), Central government (a grant of Rs. 2,500 crores), loans from multilateral funding agencies (Rs. 3,200 crores), and the AP government (Rs. 9,000 crores).

In addition to these, funds to the tune of Rs. 400 crore is made available by the Central government for the establishment of institutions like the Vellore Institute of Technology University and the SRM University and Rs. 100 crore has come for the development of smart cities.

The Rs. 7,300 crore, which is the deficit at this moment, is planned to be mobilized through the PPP route, Collective Investment Schemes, Masala bonds and convertible bonds, the modalities for which were being worked out.

Mr. Sreedhar said Rs. 1,500 crore would be required every year from the State government as budget allocations for 11 years.

Besides, innovative methods of fund-raising like lease rental discounting were being explored.