Amaravati: Hudco’s Rs 7,500 cr & World Bank’s Rs 3,350 cr

Various Financial Institutions have been coming forward to extend financial support to AP new capital Amaravati.

Hudco sanctioned Rs 7,500 crore for Amaravati construction by reducing the interest rate from 10.5% to 9.5%. Capital Region Development Authority (CRDA) received a communication in this regard.

On the other hand, World Bank offered $50 crore (Rs 3,350 crore) to Amaravati as a first installment.

CRDA wished to obtain a loan of $100 Crore (Rs 6,700 crore). A proposal to this effect was forwarded to the World Bank by the Union Government. World Bank suggested AP Government to take the money in two installments due to few technical issues. The first installment was sanctioned now. DEA suggested AP Government to obtain the remaining amount from another foreign financial institution because of the ‘Commitment Charges’ likely to be imposed by World Bank if failed to complete work as per the schedule.