Union Finance Minister Nirmala Sitharaman in the Budget the other day announced arranging 15,000 Crore to Amaravati from multiple development finance agencies.
The Opposition says these are just loans and are of no use to the state.
Eenadu issued a clarification about the same. It is true that the 15,000 Crore is a loan but it will not be a burden to the state.
The interest on loans given by agencies like the World Bank is nominal. The time limit (moratorium time) to start repayment of the loan is also longer.
Even if the central government is giving those funds in the form of a loan, it is not a burden as they have to be repaid after 30 years.
The central government also guarantees the loans.
As the loan does not come under FRBM, there is no problem for the state government.
Meanwhile, Finance Minister Nirmala Sitharaman in a Pressmeet told about the matching grant of the project.
For every project funded by the World Bank or similar agencies, there must be some amount that needs to be put by the state government as well.
She said if the state government is not in a position to give the matching grant, the central government would give it in the form of a loan or a grant. So, the Center is likely to help further in this project.
Meanwhile, the Jungle Clearance works in Amaravati are going on at a brisk pace. The construction work can resume in 4-5 months.
15,000 Crore in one year is a good amount and we will have a decent shape capital in five years if we keep up the pace.
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