Thursday, April 14, 2016
The Andhra Pradesh State Government has approached the World Bank for a loan of Rs.6,600 crore for construction of new capital city of Amaravati.
The State Government has focused on national and international financial agencies for loans in the back drop of the hopes of getting large funds from the Centre has dimmed. The Centre has accepted the State Government’s request for World Bank assistance and have issued its ‘no objection letter’ for this.
Sources said HUDCO too have agreed to finance the capital’s construction and that at the recent Partnership Summit held at Visakhapatnam in January, the CRDA had signed a MoU to this effect. HUDCO agreed to the State Government’s proposals seeking a loan of Rs.7,500 crore and would raise funds in the first phase. It may be recalled that out of the State’s request for Rs.4,000 crore, the Centre has released Rs.1,850 crore.