Hudco loans Rs 1,275 cr to bring Amaravati to life

Housing devpt body to hand over I6,225 crore more to CRDA, which is inviting tenders for bonds in a bid to raise funds

Published: 07th December 2016 04:37 AM  |   Last Updated: 07th December 2016 04:37 AM   |  A+A-

By Express News Service

VIJAYAWADA: The first tangible push for Amaravati came on Tuesday when Housing and Urban Development Corporation (Hudco) handed over a loan of Rs 1,275 crore to Capital Region Development Authority (CRDA) officials for the construction of the futuristic green filed capital city. The CRDA, in a bid to raise funds, is now inviting tenders for bonds.
Experts have termed the loan a major milestone as no visible work has taken place with regard to the construction of Amaravati after the foundation stone was laid by Prime Minister Narendra Modi on Dasara on October 22, 2015.

Hudco regional chief LVS Sudhkar Babu handed over the loan assistance letter to Capital Region Development Authority commissioner Ch Sreedhar, who said the amount would be utilised for the development of roads and other infrastructure facilities in the capital city area in the first phase. The loan assistance of Rs 1,275 crore is the first tranche of the Rs 7,500-crore loan which the HUDCO had promised to the CRDA. During the course of a conference organised by the Confederation of Indian Industries (CII) at Visakhapatnam, Hudco signed a Memorandum of Understanding (MoU) with the CRDA to advance Rs 7,500 loan.

Hudco deputy general manager KA Raman,  CRDA accounts director K Paleswara Rao, planning director R Rama Krishna Rao were present.
Meanwhile, after estimating that it would require Rs 58,000 crore for the development of Amaravati as a blue-green capital city, the government was contemplating to spend at least 70 per cent of the funds to ensure that the city would acquire visibility within the next three years.

Fact file
J27,600 — investments for Express Highway from Rayalaseema
The state to raise money through Masala Bonds — sale of bonds to raise money in rupees abroad
217.23 sq km — total area where capital will come up
Those showing interest to invest in Amaravati — Singapore, Malaysia, china, Japan, Britain, Russia, China, among others
H58,000 crore — total investment required for Amaravati

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