Andhra to Raise 2kcr Via In­fra Bonds to Build Cap­i­tal City

The Economic Times - - Companies - Our Bureau

Hy­der­abad: The Andhra Pradesh gov­ern­ment, which mo­bilised over 35,000 acres of land through an in­no­va­tive land pool­ing model to build a cap­i­tal city, is pre­par­ing to raise ₹ 2,000 crore through an is­sue of in­fras­truc­ture bonds, the first by a state. The Chan­drababu Naidu gov­ern­ment has es­ti­mated a cost of ₹ 31,000 crore for the first phase to build the cap­i­tal, Amar­a­vati. It is rais­ing the re­sources through var­i­ous means, in­clud­ing a $1 bil­lion (`6,730 crore) World Bank loan and an­other ₹ 7,500 crore from Hudco, apart from cen­tral as­sis­tance.

The state gov­ern­ment pro­poses to raise in­fras­truc­ture bonds with sov­er­eign guar­an­tee in two tranches of ₹ 1,000 crore each. The first tranche of ₹ 1,000 crore will be raised be­fore yearend, and the se­cu­ri­ties will be listed on stock ex­changes. The move comes close af­ter the state gov­ern­ment com­pleted al­lot­ment of de­vel­oped plots in the pro­posed cap­i­tal city re­gion to farm­ers and landown­ers. A pro­posal to raise ₹ 1,000 crore through bonds is­sue was ap­proved by the Cap­i­tal Re­gion De­vel­op­ment Author­ity (CRDA), headed by Naidu.

“We have now started look­ing at build­ing the ba­sic in­fras­truc­ture for the cap­i­tal city such as roads, wa­ter and sew­er­age pipe­lines, power, telecom­mu­ni­ca­tions in­fras­truc­ture,” Srid­har Cherukuri, com­mis­sioner of the CRDA, told ET. The state gov­ern­ment has ap­pointed AK Cap­i­tal Ser­vices as ad­viser for the pro­posed is­sue of in­fras­truc­ture bonds.

The Chan­drababu Naidu govt has es­ti­mated a cost of 31,000 crore for the first phase

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