AP CRDA to raise Rs 2000 cr by issuing 'Amaravati bonds'

The Andhra Pradesh Capital Region Development Authority will raise Rs 2000 crore by issuing 'Amaravati Bonds' by the end of this month for the construction of the state capital, Amaravati.

The necessary credit rating for the proposed bonds is expected by May 22 and the Andhra Pradesh government clearance will be finalised by May 23, an official release here said today. Subsequently, the bonds would be issued in the open market by the end of this month.

CRDA Commissioner Ch Sreedhar, the release said, informed Chief Minister N Chandrababu Naidu at a review meeting here today that they were expecting a rating of A or A+ for the bonds. "We are working towards securing AA rating as well," the Commissioner said.

The money raised through the bonds would be utilised for infrastructure development in the capital city, he added. The Chief Minister directed the CRDA to issue special bonds for non-resident Indians.

Chandrababu said an exclusive organisation should be set up to streamline fund flow for the capital as many people were donating money for Amaravati. Noting that an additional 50,000 people would start living in the capital by the end of this year, the Chief Minister said at least 12,000 houses would be required for them. He asked the CRDA to expedite establishment of hotels, malls, educational institutes, hospitals and other facilities for the new population.

Meanwhile, the CRDA said it would organise a real-estate developers' conclave in the capital region in June that would see the participation of reputed realtors from India and abroad. Amaravati Development Corporation Chairperson D Lakshmi Parthasarathy and other senior officials attended the review meeting.