INR 17,500 Crores for booster shot for Andhra Pradesh Capital City

Hudco, World Bank and Andhra Bank in together have 'in-principle' sanctioned an amount of around INR 17,500 Crores for building the ...

Hudco, World Bank and Andhra Bank in together have 'in-principle' sanctioned an amount of around INR 17,500 Crores for building the world class capital city Amaravati. The state government has proposed to spend INR 32,500 Crores in the next four years to build Amaravati city. Andhra Pradesh Chief Minister Chandrababu has also directed officials to vanguard for international funding agencies that extend loans at cheaper rates of interest. The state government has to spend INR 32,500 Crores in the next coming four years for creation of infrastructure in capital city.

Corporate companies such as Microsoft, Google, IBM, Apple, GE, Tesla, etc which are in the front-end for innovative technologies and also associated with Amaravati construction for economic development and employment generation. The government plans to pool-up required capital and it is necessary to zero in on financial institutions for funding, sources said. Besides the state government is also scout alternative funding sources like sovereign funds and pension funds to achieve low-cost funding for capital construction. A loan of INR 7,500 Crores had been tied up with Hudco and the World Bank loan for INR 4,700 Crores had also been approved by the central government. As per estimates the government has proposed to spend INR 4,967 Crores on roads, INR 750 Crores on drinking water sewerage facilities and INR 3,287 Crores will be spent on the power sector. Another additional amounts of INR 1,000 Crores was required for flood management and INR 250 Crores for greenery, INR 519 Crores was required to provide infrastructure in the villages of the capital city.