‘Amaravati will be developed with Rs 48,000 crore’

Municipal Administration Minister P Narayana on Monday said Amaravati bonds have received a good response and rubbished the allegations that the bonds were floated at a higher interest rate.

Published: 11th September 2018 06:26 AM  |   Last Updated: 11th September 2018 06:26 AM   |  A+A-

By Express News Service

VIJAYAWADA: Municipal Administration Minister P Narayana on Monday said Amaravati bonds have received a good response and rubbished the allegations that the bonds were floated at a higher interest rate.

Replying to a short notice question in the Assembly, the minister said the Amaravati bonds oversubscribed in an hour and fetched  Rs 2,000 crore. He said that the bonds, issued for Rs 1,300 crore, retained Rs 700 crore additional subscription by exercising the green shoe option at an interest of  10.32 per cent. He said that arranged fee of 0.85 per cent was paid to the agency concerned for floating the bonds, while several other States paid one to two per cent.

Stating that Amaravati bonds were floated for the lowest interest rate, the minister said that TIDCO of Orissa mobilised Rs 50 crore at 10.4 per cent, Gujarat State Petroleum Corporation generated Rs 1,000 crore at 10.45 per cent, Rajasthan Vidyut Yojana Nigam Limited generated Rs 323 crore by at 10.25 per cent interest, Tamil Nadu Generation and Distribution Corporation Ltd mobilised Rs 633 crore at 10.5 interest rate and UP Infra Housing Pvt Ltd raised Rs 5,400 crore at 10.15 interest rate.

He said that Amaravati would be developed at an estimated cost of Rs 48,000 crore. The State government has prepared detailed project report (DPR) for capital development and forwarded it to the Centre for approval.

The Centre has released Rs 1,500 crore so far. He said that the utilisation certificates (UCs) were also submitted to the Centre and NITI Aayog officials, accepted that the UCs were issued for Rs 1,632 crore after inspecting the works in Amaravati.

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