Construction Industry News
The government of Andhra Pradesh has taken a crucial step by approving the Capital Region Development Authority (CRDA) plan to put the Amaravati land up for sale to begin construction of infrastructure as per the master plan.
The government allowed the auction of about 248 acres to raise Rs 2,480 crore and set the compensation price at Rs 10 crore per acre. After evaluating the response to the first round of auctions, the state government is likely to proceed with the sale of further land in phases.
YS Jagan Mohan Reddy, the Prime Minister, the Municipal Administration and representatives of the CRDA examined the proposed development projects of the Capital Region.
The authorities spoke about the document submitted to the Supreme Court, which promised to start the development projects outlined in the CRDA master plan.
Following the Supreme Court's decision to implement the CRDA master plan without derogations, the state government committed to launch all projects guaranteed under the plan.
To restart development projects that had been shelved after the YSRCP took office in 2019, the state administration initially tried to get a loan from a group of banks. The government has held talks with financiers to fund nearly Rs 3,000 crore to begin the first phase of construction, which will include finishing the apartments of the IAS officers, lawmakers and secretariat staff.
In addition, the government proposed to complete the infrastructure projects in the Land Pooling Scheme (LPS) designs that were given to the farmers who sold their land to build the capital. Before registering the plots with the farmers, the government had to complete the construction of the roads, sewers and street lighting in the LPS layouts.
According to the media, the bankers indicated that they were only willing to approve the loan requested by the CRDA after obtaining a counter-guarantee from the state government and mortgaging the Amaravati land.
Bankers were hesitant to lend the CRDA a large sum of money just by taking out mortgages on the land, because they were concerned about the increase in the market value of the land in Amaravati as a result of the state government's conflicting policies.
Interestingly, the state government reportedly refused to provide a counter-guarantee for the CRDA loan, forcing the financiers to abandon the project. The state government had decided to sell the land in the capital's area to begin work after challenging its pledges in the Supreme Court.
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