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