Andhra Pradesh Chief Minster Chandrababu Naid is planning to spend Rs 51,208 crore in the first phase of development of capital city Amaravati, Mint reports.
During the first phase, which the government wants to complete by 2020, Rs 14,554 crore will be spent on construction of roads totalling 1,604 km - less than half the distance of what is to be constructed.
The project, themed “tactical urbanism”, has been questioned by experts on fiscal prudence and ecology as the Telugu Desam Party government has pooled 38,000 acres of agricultural land to build the capital city.
To raise around Rs 50,000 crore to cover the interest and debt payment, the state is planning to monetise around 25 per cent of the pooled land (10,000 acres).
The government has received Rs 27,000 crore in funding from the World Bank and the Housing and Urban Development Corporation. Around 48 per cent of capital expenditure planned in the first phase is already under execution. The state is also planning to issue Rs 2,000 crore unsecured bond with a tenor of 10 years.
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