Chandrababu Naidu sounds Bombay Stock Exchange gong, Amaravati bonds for sale on secondary market
VIJAYAWADA: Chief Minister N Chandrababu Naidu exuded confidence that Amaravati, the new greenfield capital of Andhra Pradesh, would contribute Rs 1.2 lakh crore per year to the State’s economy in 25 years. Raising funds for the construction of the city would not be a problem as his government had won investors’ trust, Naidu said after ringing the ceremonial gong at Bombay Stock Exchange to mark the listing of Amaravati bonds, in Mumbai at 9.15 am on Monday.
Institutional investors who bought the bonds issued on the Electronic Bidding Platform of the BSE on July 14, can now trade them in the secondary market. It may be noted that the AP Capital Region Development Authority (APCRDA) issued bonds worth Rs 2,000 crore, with a face value of Rs 10 lakh each, at a fixed coupon rate of 10.32 per cent for a period of 10 years. The money thus mobilised will be utilised for infrastructure development in Amaravati. Speaking on the occasion, the Chief Minister outlined his vision of making Amaravati one of the top five cities in the world. “The Singapore Consortium is developing the startup area in the capital with an investment of Rs 1.15 lakh crore creating 2.5 lakh jobs. The GSDP contribution of Amaravati will be Rs 1.2 lakh crore a year in 25 years. Our aim is not just to build a world-class capital, but to build one of the top five cities in the world,” he said, adding that his government was working to make Andhra Pradesh’s $124-billion economy worth $1 trillion by 2029.
The Chief Minister, who credited himself for having developed Hyderabad, said Olympics would soon be hosted in Amaravati. “India has never hosted Olympics, which is very sad, but I am developing Amaravati in a way that we will soon host the Olympics,” he asserted. He further assured the investors of their investments made in Amaravati. “People ask me where is the money to develop such infrastructure. If the investors have trust in the government and the government has the ability to make quick decisions, mobilising funds is not a constraint. I assure you that we won’t betray your trust and will prove our sincerity in delivering what we promised.”
Terming the oversubscription of Amaravati bonds by 1.53 times a historic event, Naidu observed that the overwhelming response to the bonds indicated the confidence of investors in the capital project. He also requested the CEO and MD of BSE Ashishkumar Chauhan to setup an innovation centre in the new capital of AP. Earlier, the CEO and MD of the BSE observed that the oversubscription of Amaravati bonds reposed the faith of investors in Naidu’s vision and efficient governance. He also made a proposal inviting the AP government to promote listing Small and Medium Enterprises on BSE. “We will soon take the proposal forward and visit Amaravati to sign an MoU in this regard,” he said. He observed that raising funds through municipal bonds was the only way forward.