CRDA requires at least ₹300 crore immediately to sustain

With budget slashed and WB backing out, govt. plans to table a White Paper

Huge task: The CRDA has to complete the quarters for officers, MLAs/MLCs, Ministers and HC judges on priority basis.

After nearly pushing down the Amaravati capital works from its priorities list, the State government has plans to table a White Paper in the Assembly on the ‘Capital Region Development Authority (CRDA) and its finances’ which are apparently in “disarray.”

In a kind of a double whammy, the government had allocated a paltry ₹500 crore for the Capital City construction in the budget inviting criticism from the Opposition. At the same time, the World Bank too had dropped the loan proposal to Andhra Pradesh.

Annuity and pension

The CRDA requires at least ₹300 crore immediately to pay anuity and pension to farmers who lost their livelihoods, pending bills etc. More than ₹180 crore is required to pay annuity to the farmers who parted with their lands to the government under the Land Pooling Scheme (LPS). A sum of ₹30,000 (dry land), ₹50,000 ( jareebu or irrigated land) per acre is paid to the farmer for crop loss. Also, ₹2,500 per month is paid as a pension to each landless family that was dependent on the lands in the Capital City area. The CRDA requires close to ₹11 crore for pension payments, sources say.

Half-built houses

“The issues requiring policy decisions were apprised to the government and and awaiting response,” said an official, who didn't want to be quoted.

According to information, the CRDA needs to continue and complete the quarters for government officers, MLAs/MLCs, ministers and High Court judges on a priority basis.

The government would have to take a decision on availing bank loan to the tune of ₹ 10,000 crore for the execution of the project. Apart from this, the Authority requires more than Rs. 95 crore towards special land acquisition units. Another Rs. 95 crore has to be released by the government for payment of pending bills for works completed, sources say. The CRDA already sourced as much as Rs. 8,400 crore various means, including the Amaravati Bonds worth of Rs. 2,000 crore. The Hudco loan stands close to Rs.1100 crore, while more than Rs. 550 crore were pooled through the sale of land. Contribution of the public to CMRF and Amaravati Bricks is about Rs. 55 crore, sources say.

Loan flight

At this juncture, the World Bank decision to drop the loan proposal to Andhra Pradesh “would further hit the CRDA plans”. The total cost of the project proposed to the World Bank by the previous government in 2016 was $715 million, of which the bank had committed to extending assistance of $300 million.