CRDA has got preliminary approvals for 10850 Crore worth loans for the ambitious Amaravati Project. 7500 Crore of this will be funded by HUDCO. The agency also agreed to fund this project at a lower interest. While HUDCO usually charges 10.5% interest rate for such loans, Amaravati loan will come up at 9.5%. HUDCO intimated this to CRDA the other day.
On the other side, World Bank is going to fund 50 Crore US Dollars (3350 Crore Approx) for this Project. We are told that the World Bank has allotted Reference Number to the project which will be usually deemed as approved. These loans will be released in phases as soon as the government finalizes the Detailed Project Report (DPR) and starts the construction.
Various other lending agencies have also evinced interest in funding Amaravati and CRDA is in talks with them. This comes a short in the arm for the state government which is looking to complete the first phase of the World Class Capital by 2018-19. TDP’s electoral fortunes in 2019 elections will depend on the progress of this project. Already the Center had washed its hands off the project saying that it will only fund 3500 Crore for it.
