Naidu Begins Funds Hunt for Amaravati

The Basic infrastructure facilities in Amaravati, the upcoming capital of Andhra Pradesh is estimated to cost a whopping 43000 Crore to the state exchequer for the next 10 years. 32500 Crore of this amount should be used in the next four years itself. The government officials are already in talks with various lending agencies for loans at lower interest rates.

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This is a compulsory investment given that the area is formerly rural area and all the infrastructure facilities are to be upgraded to accommodate the growing population which will migrate to the area in the next few years. But the irony is that Central government which was mandated to fund the capital construction is just helping to the extent of 2500 Crore in total.

Even that amount is given only in phases. So, the state government will have really tough time to managing funds for these expenses. The Chief Minister cleverly evaded the land acquisition expenses by going for Land Pooling. The state government has collected about 33000 acres from the farmers only from Land Pooling keeping the expense at bare minimum.