The Proposed Capital of Andhra Pradesh, Amaravati will cost a whopping 58000 Crore for the construction. 70% of that have to be spent in the next three years and that too for the development of the basic infrastructure in the area. The state government is pondering five different ways to accumulate the necessary funding.
Public Private Partnership Model, Lease Rental Discounting Model, G2G Equity Fund, Collective Investment Scheme and Bonds are the five models being mooted to get the necessary funding. CRDA already has some proposals pending under these schemes and is currently in preparation.
Section 94(3) of Andhra Pradesh Reorganization Act mandates Central government to fund the expenses of the capital construction. Accordingly, all the government buildings like Raj Bhavan, High Court, Secretariat, Assembly were to be funded by the center. All the infrastructure in the capital was to be funded by the Center as well. But then Center is going to give only 2500 Crore as a whole which means the other money has to be borrowed.
