Hudco Inks Deal With Ap Govt For Rs 11,000-Cr Loan For Amaravati

Amaravati: In a shot in the arm to the efforts by the TDP-led NDA Government in Andhra Pradesh to complete the first phase of capital construction works at Amaravati in three years, Housing and Urban Development Corporation (HUDCO) on Sunday entered into an MoU with the Capital Region Development Authority (CRDA) to release a loan of Rs11,000 crore in phases.

Following an announcement in the budget for 2024-25 by Union Finance Minister NIrmala Sitharaman, World Bank has already sanctioned a $800 million loan on the request of the Centre for developing Amaravati as a futuristic capital and an economic hub. The loan will have a final maturity in 29 years, which includes a grace period of six years. The soft loan is aimed at transforming Amaravati as a sustainable growth/economic hub and create opportunities for many. Amaravati is projected to have a population of 3.5 million by 2050.

Asian Development Bank (ADB) has also approved $788.8 million result-centric loan for developing Amaravati into a green and smart capital with world-class infrastructure.

Chief Minister N Chandrababu Naidu, who was present at the time of signing MoU with HUDCO at Undavalli, said Amaravati will be totally a sustainable city with plans to meet its power requirement through renewable energy. Amaravati will be developed as a self-sustaining city with allocation from the tax-payers' money. Out of an estimated 35,000 acres acquired from the farmers for the new capital after bifurcation of Andhra Pradesh in 2014, around 8,000 acres will be sold in phases to mop up the required funds besides taking long-term loans from international financial institutions, highly-placed sources told Bizz Buzz.

The ADB loan is expected to be provided in Japanese Yen equivalent to $121.97 million. Hence, the total loan to be availed from World Bank and ADB will be to the extent of $1.78 billion.

AP Minister for Municipal Administration and Urban Development P Narayana and HUDCO Chairman and Managing Director Sanjay Kulshhreshtha were present, among others, at the time of inking the loan agreement with the HUDCO. The board of HUDCO approved the loan on January 22 last after protracted discussions on modalities of repayment and infrastructure works to be taken up with the funds to be released.

The State Government has already decided to invite Prime Minister Narendra Modi to relaunch the construction of Amaravati within a month or so. The construction work, which was kicked up after bhoomi puja performed by Modi in 2015, came to a grinding halt during the YSRCP's five-year regime following the decision to develop three capitals and make Visakhapatnam the administrative capital.

The decision could not be implemented due to sustained movement by the farmers of the capital region and court cases filed by those opposed to the trifurcation of the capital. Officials said they will soon take up the construction of buildings and infrastructure works worth Rs1 lakh crore including road infrastructure worth Rs40,000 crore. CRDA at its recent meeting has given its stamp of approval finalising tenders for Rs37,702.15 crore in Amaravati. after clearance from the Cabinet meeting slated for March 17.