APCRDA Secures ₹11,000 Crore HUDCO Loan for Amaravati Development
The Andhra Pradesh Capital Region Development Authority (APCRDA) has signed an agreement with the Housing and Urban Development Corporation (HUDCO) for a ₹11,000 crore loan to support the construction of Amaravati, the state's greenfield capital city. The agreement was formalized in the presence of Chief Minister N. Chandrababu Naidu at his residence in Undavalli, Guntur district.
The loan agreement marks a significant step in the efforts to develop Amaravati as the administrative and legislative capital of Andhra Pradesh. The funding from HUDCO is expected to facilitate large-scale infrastructure development, including roads, drainage systems, water supply, and public utilities essential for the capital city’s construction.
A key decision regarding the loan was taken at a HUDCO board meeting in Mumbai on January 22, where the proposal was approved. The agreement was signed by senior officials from both APCRDA and HUDCO, including HUDCO Chairman and Managing Director Sanjay Kulshrestha and Andhra Pradesh Municipal Administration Minister P. Narayana.
Amaravati has been planned as a modern capital with infrastructure to support administrative, commercial, and residential activities. The city’s development has been a priority for the Andhra Pradesh government, and securing financial backing from HUDCO is seen as a crucial step in advancing construction activities. The loan is expected to be used for planned infrastructure projects aimed at creating a well-connected and sustainable urban environment.
The agreement follows earlier attempts by the Andhra Pradesh government to secure funding for Amaravati’s development. Various proposals and financial models have been explored to ensure steady progress in the construction of the capital city. With the approval from HUDCO, the government aims to expedite key projects and strengthen the region’s urban framework.
Officials have emphasized that the funds will be deployed efficiently to meet construction targets and maintain project timelines. The Andhra Pradesh government has also indicated that further financial partnerships and funding arrangements may be explored to support Amaravati’s development in the coming years.
The signing of the loan agreement reflects the state government’s commitment to developing Amaravati as a fully functional capital. With HUDCO’s financial support, the planned infrastructure and civic amenities are expected to take shape, contributing to the long-term urban development goals of Andhra Pradesh.
