Amaravati set to get Rs. 31,000 cr loan

Guntur: Municipal administration and urban development minister P Narayana announced that capital Amaravati is set to receive a total loan of Rs 31,000 crore from various financial institutions for its development. The funds will be utilised for the construction and infrastructure development of the capital city.

Speaking in Legislative Council on Wednesday, Narayana stated that the World Bank and the Asian Development Bank (ADB) have agreed to provide Rs 15,000 crore in loans. Additionally, the Housing and Urban Development Corporation (HUDCO) has sanctioned Rs 11,000 crore, while KFW Bank, a German financial institution, will contribute Rs 5,000 crore.

The minister also highlighted that the Central government has clarified its support for the loan arrangements and will bear the entire cost of the Amaravati Railway Project. However, the state government is still deliberating on how to acquire the necessary land for the railway project.

The minister reiterated that Amaravati has been designed as a self-sustainable city, with the state government allocating Rs 6,000 crore in the 2025-26 budget for ongoing capital city works. In response to a question by Leader of Opposition Botcha Satyanarayana, Narayana informed that Rs 6,000 crore spent from budget will be repaid once Centre and banks release funds.

He added that after the development projects are completed, the government plans to sell lands in Amaravati to repay the loans.