NaBFID loan of Rs 7,500 cr to give infra boost in Amaravati capital region
Singapore being involved to share globally recognised expertise
image for illustrative purpose
Amaravati: Capital Region Development Authority (CRDA) is expected to give an infrastructure boost in Amaravati with the Rs.7,500 crore sanctioned recently by the National Bank for Financing Infrastructure and Development (NaBFID).
The State Government stood guarantee for the loan and issued a letter for conformity in favour of CRDA to obtain the loan to accelerate critical infrastructure projects in the region, which include lands already under possession under Land Pooling Scheme (LPS) and LPS 2.0.
With patronage from the Centre, the State Government has already secured financial assistance from the World Bank, Asian Development Bank, HUDCO and other organisations. The capital city is being developed in a self-sustaining and energy-efficient way to make it (first phase) operational in 2027, Minister for Municipal Administration and Urban Development K. Narayana, said.
The World Bank and ADB have totally sanctioned Rs.13,500 crore for the first phase. The World Bank has already released the first tranche and is on track to disburse the remaining amount under the second phase. For housing and other related activities, HUDCO has entered into an agreement with the government for disbursement of Rs.11,000 crore.
The World Bank and ADB are releasing funds for 'Amaravati Capital City Development Program' with focus on creating a sustainable greenfield capital. The Government of India has committed funding of Rs.1400 crore out of Rs.15,000 crore long-term loan being facilitated by it.
Meanwhile, through GO Ms. No. 252 issued on Tuesday, the government notified the expansion of LPS 2.0 for expansion of Amaravati capital city. The order authorises CRDA to initiate the land pooling process from seven villages adjoining Amaravati city for which nearly 33,000 acres was acquired under LPS in 2015 from 29 villages. LPS 2.0 covers land acquisition of 16,666 acres in Vykuntapuram, Pedamaduru, Endroyi and Kaslapudi Lemalle in Palnadu district and Vaddamanu, Harischandrapuram and Pedamarimi in Guntur district.
Minister Narayana has already promised the affected farmers that they will be offered compensation packages on par with those offered lands in the first phase a decade ago. The GO also authorises CRDA to take possession of 16,652 acres of patta land and104.01 acres of assigned land from the seven villages surrounding the 29 villages listed in the first phase. This also covers government land to an extent of 3,828.30 acres. LPS 2.0 will take care of the requirement for building an international airport, sports city and improving connectivity.
Though the State Cabinet decided to revive the involvement of Singapore Government for comprehensive development of Amaravati five years after it was shelved by the YSRCP regime, during the recent CII Partnership Summit in Visakhapatnam, it was decided to collaborate with Singapore for extensive consultancy.
A MoU was signed by Nara Lokesh, Minister for IT, Electronics and Communications and Gan Siow Huang, Minister of State for Foreign Affairs and Trade and Industry, Singapore. The signing took place in the presence of Chief Minister N. Chandrababu Naidu and Singapore Coordinating Minister of National Security and Minister of Home Affairs K Shanmugam at the 30th edition of CII Partnership Summit-2025.
The comprehensive partnership establishes a structured framework through which Singapore will share its globally recognised expertise in public policy design, sustainable urban planning, digital governance transformation and capability development. It aims to support Andhra Pradesh, particularly the development of Amaravati Capital City, through advisory missions, training programmes, joint working groups and capacity building initiatives.
