In a significant development pertaining to mobilising funds for the construction of the capital city, Amaravati, the Andhra Pradesh Capital Region Development Authority (AP-CRDA) is all set to enter the capital markets with ‘Amaravati bonds’ worth ₹2,000 crore by this month-end.
The credit rating for these debt instrument is set to be completed by May 22. Once it is done, the CRDA will issue the bonds after obtaining the government’s permission.
CRDA Commissioner Cherukuri Sreedhar stated in a press release that he informed Chief Minister N. Chandrababu Naidu about it during the review meeting conducted on Friday.
Rating
Mr. Sreedhar expressed confidence that the bonds would be assigned A, A+, and AA ratings, and said they would help in meeting a substantial portion of the capital expenditure being incurred by the government on the construction of Amaravati.
The State government would stand as the guarantor for the bonds, he stated.
Earlier, taking stock of the Amaravati project, Mr. Naidu said the CRDA should emphasise on creation of social infrastructure in view of the likely spurt in population by 50,000 by the end of 2018.
Due priority should be given to augment healthcare facilities and meeting the educational needs of the growing population, he advised.
Mr. Sreedhar said a huge mall was mooted in public-private partnership mode. If this plan did not work, the government would build the facility on its own and hand it over to private entities for maintenance in future.
Land for companies
Mr. Sreedhar told Mr. Naidu that there was a need for drafting a policy for allotting land to the companies for setting up their corporate offices in Amaravati, for which requests were being made.
The tender process for the construction of government buildings was poised to be completed by the middle of June, after which foundation would be laid, the Commissioner added.
Mr. Sreedhar stated that the London School of Economics (LSE) had come forward to help the CRDA in transforming Amaravati into a world-class happy city.
Students of LSE, who are currently involved in preparation of World Happiness Report, are coming to Amaravati in August on a two-month study of the different facets of socio-economic development of the capital city.
