Rs 11,000 crore HUDCO loan for Amaravati works

Municipal and Urban Development Minister Ponguru Narayana announced that the Housing and Urban Development Corporation (HUDCO) has agreed to provide a loan of Rs 11,000 crore for the construction of Amaravati, the new capital of Andhra Pradesh. The minister, accompanied by Special Chief Secretary Anil Kumar Singhal, held discussions with HUDCO officials during a visit to New Delhi on Monday.
They met with HUDCO CMD Sanjay Kul Shrestha and HUDCO Vijayawada Regional Chief B.S.N. Murthy. Minister Narayana presented the government’s vision for the construction of Amaravati to the HUDCO officials. Satisfied with the government’s plans, the HUDCO CMD approved the loan of Rs 11,000 crore to the Andhra Pradesh Capital Region Development Authority (APCRDA) for the project.
The minister stated that the government, after coming to power, has been focused on securing funds for the capital’s development. The estimated cost for completing Phase-1 of Amaravati’s construction is Rs 26,000 crore. The World Bank and the Asian Development Bank have already agreed to provide Rs 15,000 crore in loans, and with HUDCO’s additional Rs 11,000 crore, the capital works will progress rapidly, he said.
Minister Narayana further explained that following Chief Minister Chandrababu Naidu’s relaunch of the Amaravati project, several banks and financial institutions have shown interest in supporting the construction of the world-class capital. The government is committed to adhering to a fixed timeline for completing buildings and essential infrastructure in the capital.
It is estimated that Rs 50,000 crore will be required to complete the remaining works, which include constructing government office complexes, developing infrastructure in returnable plots provided to farmers through land pooling, and establishing essential facilities like roads, drainage, and drinking water supply. Phase-1 of the capital’s construction alone is expected to cost Rs 26,000 crore.