Amaravati: Capital city will be soon getting around Rs 17,500 from World Bank, Huco and Andhra Bank. The Financial Express reported that the amount is sanctioned in-principle by all the three for the buidling the greenfield capital city, Amaravati.
Since the Andhra Pradesh government is mulling to spend Rs 32,500 crore on the capital city development in the next four years, Chief Minister N Chandrababu Naidu directed the officials to search for international funding agencies that extend loan for Amaravati at cheaper rate of interest.
Principal Secretary Energy Ajay Jain said that this is the first time in the country that any financial institutions have supported the AP government on such a massive scale of construction, reported Financial Express. A press release from the government said that the government is planning to pool up required funds and it was necessary to select financial institutions for the funding. Corporate and IT majors like Microsoft, Google, IBM, Tesla etc which are in the fore-front may be associated with Amaravati construction for economic development and job creations.
The AP government is also exploring alternative funding sources like pension funds and sovereign funds to achieve low-cost funding for capital construction. It is learnt that total of Rs 7,500 crore had been tied up with Hudco corporation and the World Bank loan for Rs 4,700 crore had also been approved by the central government.