Land to Turn Gold Mine for Amaravati

The UK government represented by British Deputy High Commission, Hyderabad, has engaged Price water house Coopers Private Limited (PWC), to prepare the strategy report which will suggest the investment opportunities to the UK-based companies and to the AP government on ways and means for mobilizing funds to build Amaravati.

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It has estimated the reserve price of land per acre in the upcoming capital city at 4.3 crores in 2019 and it is estimated that the basic reserve price of land will increase from 2 crores to 4 crores in the next three years. The reserve price will also include total infrastructure cost incurred per acre by CRDA as well.

AP government can get 31,000 crores and the maximum basic reserve basic price will escalate to about 6 crores. The agency also estimated that the total funding requirement of the capital would be about 70,000 crores. The UK Export Finance Lending Group will provide the maximum amount of loan at a rate of 85 percent of the project cost in Amaravati. Loans will be available with an interest rate of 0.40 to 3.5 percent depending on the tenure. But then, the state government has to bear the hedging costs.