CRDA is planning to use the 7500 Crore loan from HUDCO to create the basic infrastructure in the Amaravati area. The CRDA is preparing the report for the first phase loans and it will be submitted to HUDCO Board meeting in October. The Main Road connecting the capital and other areas, Seven other roads will be costing 1200 Crore.
The remaining amount will be used for the development of Infrastructure development at the layouts given to the farmers. For this loan, CRDA will keep its share of land as a lien to this loan. With the money coming up, the work is expected to speed up. HUDCO played a crucial role in the construction of Chattisgarh Capital Raipur as well.
Earlier HUDCO proposed the loan at 10.15% interest and later agreed to give at 9.89%. CRDA is in talks for getting it down to 9.65%. For every 100 Rupees, CRDA will have to put land worth 125 Rupees as a lien. These lands can be anywhere in the state. If the cost of these lands increases, HUDCO will retain required land and release remaining. So HUDCO loan is feasible in all ways.
