Amaravati Gets Its First Loan Sanction Letter

In what can be termed as a filip to the dream of Amaravati, Housing and Urban Development Corporation (HUDCO) has sanctioned 1,275 crores towards the first installment of its committed loan of Rs.7,500 crore. The sanctioning letter was handed over to CRDA commissioner the other day.

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The amount will be used for the development of infrastructure like roads and drains in the first phase. The government is also at an advanced stage of talks with World Bank to sanction the loan. The Proposed Capital of Andhra Pradesh, Amaravati will cost a whopping 58000 Crore for the construction.

70% of that have to be spent in the next three years and that too for the development of the basic infrastructure in the area. Section 94(3) of Andhra Pradesh Reorganization Act mandates Central government to fund the expenses of the capital construction. Accordingly, all the government buildings like Raj Bhavan, High Court, Secretariat, Assembly were to be funded by the center. All the infrastructure in the capital was to be funded by the Center as well. But then Center is going to give only 2500 Crore as a whole which means the other money has to be borrowed.