Amaravati gets Rs 11K cr loan for rebuilding

Vijayawada: In a significant step towards the rapid development of Amaravati, the Andhra Pradesh Capital Region Development Authority (APCRDA) has signed an agreement with the Housing and Urban Development Corporation (HUDCO) to secure a loan of Rs 11,000 crore for resuming construction works.

The Memorandum of Understanding (MoU) was signed by APCRDA Chairman and Managing Director Sanjay Kulshreshta and HUDCO officials in the presence of Chief Minister N. Chandrababu Naidu and Minister for Municipal Administration and Urban Development P. Narayana.

The state government remains committed to ensuring the capital city is completed by 2027. However, Minister P. Narayana criticised the opposition YSR Congress Party (YSRCP), accusing it of misleading the public by claiming that these loans would burden the state’s finances. He clarified that the repayment of these loans would be handled by the Central government, not the state. Amaravati, he asserted, is designed as a self-sustaining capital city.

The funds from the HUDCO loan will be used for completion of 4,000 buildings, construction of the new Assembly building, development of the Andhra Pradesh High Court complex, building of major roads and link roads and other essential infrastructure projects.

In addition to the HUDCO loan, the state government is securing Rs 13,400 crore from the World Bank and Asian Development Bank (ADB), Rs. 5,000 crore from KFW Development Bank and Central government grant of Rs 1,560 crore.

Furthermore, efforts are underway to mobilise funds through loans from national and international agencies, as well as revenue generated from the sale and lease of land.

In recent months, the APCRDA has initiated jungle clearance and has been assessing pending construction projects. Tenders have been invited to facilitate the swift resumption of work, and the sanctioning process for new contracts is already underway.

The MoU between HUDCO and APCRDA marks a pivotal development in restarting Amaravati’s construction, reinforcing the government's determination to complete the capital city by 2027. Key HUDCO officials present at the signing included M Nagaraj (Director, Corporate Planning), Daljeet Singh Khatri (Director, Finance), B.S.A. Murthy (Regional Chief, AP), S.M. Srinivas (JGM, Loans), and T. Subbarao (Senior Manager), along with senior APCRDA officials.

With this renewed financial backing, Amaravati’s development is set to gain momentum, aligning with the state’s vision for a world-class capital city.