VIJAYAWADA: To help CRDA raise funds through various sources for the infrastructure development in Amaravati, the State government has issued orders agreeing to provide guarantee for the funds to be tapped. With the guarantee, the CRDA will raise up to Rs 2,000 crore through domestic and masala bonds.
The government also extended its guarantee for the hybrid annuity-based Public Private Partnership model for the development of infrastructure of the plots that are returned to the farmers who have given lands under Land Pooling Scheme. About Rs10,732 crore will be required to develop the facilities in five of the total 13 returnable plot zones.
The government, before issuing the guarantee, had set a few conditions. It said that the CRDA should see to it that the rate of interest for the loans to be taken from HUDCO and other such banks be less than eight percent. For bonds, it should be less than six percent.“The government hereby approves the issue of Government Guarantee for raising funds through Domestic as well as Masala Bonds and hybrid annuity based PPP for development of infrastructure facilities in Amaravati,” principal secretary (CRDA) Ajay Jain said in the GO.