From Our Correspondent
Amaravati: In a major step to accelerate the development of the capital city, the Andhra Pradesh Government has approved a Government Guarantee and Letter of Comfort for a ₹7,500-crore loan from the National Bank for Financing Infrastructure and Development (NaBFID) to the AP Capital Region Development Authority (APCRDA). The order was issued through G.O. Ms. No. 245 by the Municipal Administration & Urban Development (CRDA) Department on November 28.
According to the government, the guarantee will cover both principal and interest, and will remain valid for the full tenure of the loan. The guarantee will come into effect only if APCRDA fails to meet repayment obligations. APCRDA must negotiate for zero foreclosure charges, submit a detailed repayment schedule, and service the debt entirely from its own resources. The agency is also required to pay a 2% guarantee commission to the state.
The loan is expected to provide a critical financial boost for ongoing and upcoming infrastructure works in Amaravati, which has seen renewed momentum under the current administration. This marks one of the largest single financial support measures extended for capital development.
The order was issued with the concurrence of the Finance Department, clearing the way for APCRDA to proceed with loan formalities and project mobilisation.