The State government on Monday accorded approval for providing a guarantee to the AP-Capital Region Development Authority (CRDA) for raising loans amounting to ₹10,000 crore from scheduled commercial banks for the current financial year.
This fundraising is for meeting a part of the capital expenditure (capex) being incurred on the development of trunk infrastructure, government complex and Tier-2 infrastructure in Amaravati. The overall capex requirement of the Phase-I projects was estimated to be ₹48,115 crore.
It was stated in a G.O (MS No. 332) issued by Principal Secretary (CRDA and infrastructure and investment) Ajay Jain that the government needed to give a guarantee for raising cost-effective capital for construction of Amaravati.
The project is unprecedented in terms of size and scale wherein Tier-1 (trunk) and Tier-2 (last mile) infrastructure works are taken up simultaneously in addition to the development of Amaravati Government Complex (AGC). The AGC comprises the Secretariat, HoD office buildings, legislative Assembly and Council, High Court, Raj Bhavan, CM bungalow, residences of Ministers, houses for officers and staff etc. The repayment of principal and interest is to be made by CRDA as per norms.
