Andhra Pradesh ponders options to raise Rs 58k cr for new capital

Amaravati: The agency developing the new Andhra Pradesh capital has come out with several options, including creation of a Government-to-Government Equity Fund, to mobilise the Rs 58,000 crore required for completing the project in the next three years.

Sources said, Rs 32,000 crore is required for development of basic infrastructure like roads, drinking water, drains and lighting in the capital Amaravati, according to proposals drafted by the AP Capital Region Development Authority .

According to officials a round-table meet will be conducted here on November 25 to explore the investment and fund-raising options.

Rs 1,400 crore is likely to be raised through the Fund, which will be spent on mixed-use development and social infrastructure development in the capital.

The CRDA is in talks with the World Bank for a USD 500-million loan, while Hudco, a Central PSU, has given a firm commitment for a Rs 7,500-crore loan.

The state and Central government is also expected to extend required financial support for the capital development.

However, the Centre has already released Rs 1,500 crore for construction of key Government buildings like Secretariat, High Court and Legislature complex and the CRDA expects to get another Rs 1,000 crore soon.Public-Private Partnership model is also being looked at to raise Rs 5,500 crore for formation of power distribution network, water and road network.