Amaravati gets around L1,000 cr, MA and UD  department L6,741 cr

Finance minister proves AP is undeterred by Centre’s apathy towards the capital city

Published: 09th March 2018 03:17 AM  |   Last Updated: 09th March 2018 03:52 AM   |  A+A-

By Express News Service

VIJAYAWADA: Aimed at expediting the execution of capital city development works, finance minister Yanamala Ramakrishnudu proposed to allocate Rs 7,741 crore for the AP Capital Region Development Authority (CRDA) and the Municipal Administration and Urban Development (MA and UD) departments. Of the total proposed outlay, the CRDA’s share is around Rs 1,000 crore.

During his address, while presenting the budget on Thursday, Ramakrishnudu said, “Amaravati, the Praja Rajadhani, has entered the crucial phase of construction. Amaravati is the first greenfield city selected as a Smart City. Various infrastructural works costing about Rs 45,000 crore, are being executed by CRDA. I propose an allocation of Rs 7,741 cr for the MA and UD and CRDA.” The latest allocation, the minister observed, was 49 percent higher than that in the 2017-18 outlay of Rs 5,207 crore.

According to information, the State government allotted Rs 457 crore for the Amaravati Capital City Development project, under which the infrastructure in the capital will be developed. “Another Rs 166 crore is proposed to be spent over the land pooling, and Rs 65.6 crore is proposed towards capital region social security fund,” an official from MA and UD department said.

The official further said that the government would release more funds as and when the proposed allocations were used by the CRDA.

It maybe recalled that Union government made no allocations for the construction of Amaravati in the General Budget presented in February, this year. The Union government has released Rs 2,500 crore - Rs 1,500 crore towards capital construction and Rs 1,000 crore for drainage projects in Vijayawada and Guntur - in the last four years.

“The allocation by the State government will help us continue (with) the ongoing works. Since we are expecting another Rs 500 crore from the Union government, it will help us expedite the works. However, we will need a total of Rs 58,000 crore to develop the city we planned,” a top ranking official of CRDA said. The official further said that the CRDA would also use funds from private banks in India, foreign development banks and other sources. “We will start tapping those funds from the next fiscal year,” the official remarked.

Stay up to date on all the latest Andhra Pradesh news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp