Even as the World Bank has approved a soft loan of Rs 15,000 crore for the reconstruction of Amaravati capital city project of the Andhra Pradesh government, the project received yet another mega investment.
Housing and Urban Development Corporation (HUDCO) has sanctioned a loan of Rs 11,000 crore to the state government for carrying out works in the Amaravati capital city.
The decision was announced following a meeting between Municipal Administration and Urban Development (MAUD) Minister P Narayana and HUDCO CMD Sanjay Kulshrestha in New Delhi on Monday.
"Satisfied by the state government's proposals, HUDCO CEO agreed to lend Rs 11,000 crore to Andhra Pradesh Capital Region Development Authority (AP CRDA) for Amaravati construction," an official release said.
Narayana elaborated on the State government’s action plan to develop Amaravati and requested the loan. Impressed by the plan, Sanjay agreed to sanction the loan.
The Minister explained that the estimated cost for constructing buildings, roads, drainage, and setting up drinking water facilities in the capital city is around Rs 50,000 crore. Of the total, Rs 26,000 crore is needed for phase one works.
Highlighting that the World Bank and Asian Development Bank (ADB) have agreed to jointly provide Rs 15,000 crore, he said HUDCO is extending the remaining amount.
Special Chief Secretary Anil Singhal, HUDCO Vijayawada Regional Chief BSN Murthy and others were also present during the meeting.