VIJAYAWADA: Ahead of the elections, the AP Capital Region Development Authority (APCRDA), which has already awarded tenders for works worth close to Rs 27,000 crore, is preparing the ground to finalise contractors for 24 more projects estimated to cost a whopping Rs 21,000 crore. The authority is planning to finish the process in the next six to eight months.
Officials explained that all the new projects were a part of the first phase of the capital city development project (CCDP). “In the first phase, 56 major projects, mostly infrastructure, were planned with a total capital expenditure of around Rs 48,000 crore. The works related to 32 projects worth of Rs 26,600 crore are underway, and the rest will be launched in the next few months,” APCRDA commissioner Cherukuri Sreedhar said.
Of the 24 projects, tenders for six have been invited and the rest are in pre-tender stage. The officials said that all the works are expected to be ready in 24-36 months. “Most of the works which are in progress will be ready in the next six-eight months. The new ones will take up to three years,” another official said.
When asked where the authority would pool-in finances for the projects from, the officials said that a multipronged strategy had been devised for tapping funds. “We plan to get around Rs 8,000 crore from capital markets. Then, we have financial institutions like World Bank, Hudco and commercial banks. Land monetisation is another option we are looking at,” the official observed.
However, experts are of the view that fiscal management would be a difficult task for the government. “Announcing these works in the election year will put pressure on the State exchequer. If close to Rs 50,000 crore is diverted for capital construction, then the State will have no spending capacity for other purposes,” said former Chief Secretary, IYR Krishna Rao.
