HUDCO to Lend Rs 11,000 Crore for Amaravati’s Greenfield Development

Housing and Urban Development Corporation Ltd (HUDCO), a prominent public sector enterprise, has agreed to lend Rs 11,000 crore for the construction of Amaravati, the greenfield capital city of Andhra Pradesh. The state government made the announcement on Monday, detailing a meeting between Municipal Minister P Narayana and HUDCO’s Chief Executive Officer, Sanjay Kulshrestha, in Delhi.

Minister Narayana presented the state’s development plans for Amaravati, which led to HUDCO's decision to provide the loan. According to an official release, the HUDCO CEO expressed satisfaction with the state’s proposals, confirming the loan amount of Rs 11,000 crore to the Andhra Pradesh Capital Region Development Authority (AP CRDA).

This loan will contribute to the Rs 26,000 crore required for the first phase of Amaravati’s construction. With additional financial commitments from the World Bank and Asian Development Bank (ADB), who have promised Rs 15,000 crore, the full funding for the initial phase of development has now been secured.

References to the investment can be found in the HUDCO's website here.