Andhra Pradesh provides Rs 1,500 crore as seed equity to Amaravati

HYDERABAD: Andhra Pradesh, which continues to face challenges of resources towards developmental needs and Greenfield capital city Amaravati, has provided Rs 1,500 crore as seed equity to enable the Capital Region Development Authority (CRDA) to raise required funds from markets and institutions.

The southern India state has estimated around Rs 18,000 crore of investments required for construction of the new capital city.

Presenting the Budget for 2016-17 in Hyderabad on Thursday, Andhra finance minister Yanamala Ramakrishnudu said CRDA would now mobilise additional financial resources required for the capital construction. These funds will be mobilised mainly from the infrastructure financing institutions and the markets, in addition to the assistance of the Central government.

The finance minister informed the Legislative Assembly that the detailed master plan for the capital city was approved and notified and the construction of interim government complex started.

“The works on permanent buildings and other infrastructure will commence during 2016-17,” he said.

Ramakrishnudu presented the Budget for 2016-17 with an estimated expenditure of Rs 1.35 lakh crore, comprising non-planned expenditure of aroundRs 86,554 crore and planned expenditure of Rs 49,134 crore, representing an increase of 20% over 2015-16.