HUDCO Agrees To Lend Rs 11,000 Crore For Amaravati Capital City Development

Housing and Urban Development Corp. Ltd., a navaratna central public sector enterprise, has come forward to lend Rs 11,000 crore for the construction of Amaravati greenfield capital city in Andhra Pradesh, the state government said on Monday. Municipal Minister P Narayana, who was in Delhi today, met with HUDCO chief executive Sanjay Kulshrestha and explained to him about the state's government's plans for Amaravati development.

"Satisfied by the state government's proposals, HUDCO CEO agreed to lend Rs 11,000 crore to Andhra Pradesh Capital Region Development Authority (AP CRDA) for Amaravati construction," an official release said.

Out of the Rs 26,000 crore needed for constructing Amaravati Phase-1, the World Bank and Asian Development Bank came forward to lend Rs 15,000 crore and the fresh promise of Rs 11,000 crore loan by HUDCO will ensure that the required amount of Rs 26,000 crore has been taken care of, it added.