Cash-Strapped AP to Go for Loans for Amaravati

Cash-Strapped Andhra Pradesh will be borrowing bout Rs 65,000 crore from foreign and domestic financial institutions to construct the capital city, Amaravati. The Capital infrastructure will cost 64,958 crores which will be borrowed in three phases. In the first phase, it was proposed to spend Rs 4,749 crore on infrastructure in Amaravati.

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3324 Crore will be funded by the World Bank which is pending a formal approval from the Center. This money will be used for development of water and sewerage infrastructure, telecommunications, solid waste management and fire hydrant network. The Asian Infrastructure and Investment Bank (AIIB) will be funding the development of inner ring road – phase 1.

The project will be developed at an estimated cost of Rs 3930 crore. The AIIB will fund Rs 2751 Crore and Center already cleared this project. The 7500 Crore project of Transport infrastructure, electricity, gas supply and flood management will be mostly funded by the Housing and Urban Development Corporation (Hudco). The loan may be up to 6750 Crore.

Besides these projects, there is another 1250 Crore worth Riverfront development project, 4250 Crore to develop green zones and 3000 crores on infrastructure. The development of layout and infrastructure in 24 villages, where land pooling was taken up, will be costing 17500 Crore. The state government is looking at the Center to fund 10500 Crore for the construction of all government buildings. The estimates of these buildings are being prepared to be submitted to the Union Finance Ministry.