HYDERABAD: Stating that as per provisional estimates it would require about Rs 1.2 lakh crore to construct Amaravati over the next two decades, Andhra Pradesh Government on Saturday urged the Central Government to allocate at least Rs 4,000 crore for the new capital’s construction in the ensuing Union budget for 2016-17.
Further, the state informed the Centre that the essential infrastructure, including the Raj Bhawan, Secretariat, High Court and Assembly along with trunk infrastructure is estimated to cost around Rs 42,935 crore over the next five years in Amaravati. Finance Minister Yanamala Ramakrishnudu told the Centre that his government intends to raise resources for the construction of capital city through innovative means, which include floating of Amaravati Development Bonds.
He further requested the Centre that all investments in Amaravati infrastructure be exempted from taxation and that the Andhra Pradesh Government be permitted to seek financing from the National Infrastructure Investment Fund and raise Zero Coupon Bonds and Ta x -Fr e e Bonds.