Archive · 30 Nov 2025
AP Extends Loan Guarantee for Amaravati Development
The Andhra Pradesh government has decided to help the Capital Region Development Authority (CRDA) get a big loan of Rs.
7,500 crore.
This loan is from a special bank called NaBFID and will be used to build and improve the new capital city of Amaravati.
The government has promised to support this loan, but only if the CRDA can pay back the money on its own.
The CRDA will also have to pay a small fee for this support.
The Chief Minister also announced that three regional zones will be created to ensure that all parts of the state develop equally.
He met with farmers and listened to their concerns, promising to address their issues and ensure they get the benefits they were promised.
The government is also working to get tax exemptions for these farmers.
This help from the government is important because it shows that they believe in the project and want to make sure it happens while also taking care of the people who are affected by it.
Andhra Pradesh government extends a Rs. 7,500 crore loan guarantee for Amaravati's development.
The loan is from the National Bank for Financing Infrastructure and Development (NaBFID).
The guarantee covers both the principal and interest for the entire loan period.
The Capital Region Development Authority (CRDA) must meet debt servicing obligations from its own resources.
CRDA will pay a 2% guarantee commission on the guaranteed amount.
- Who
- Andhra Pradesh Government, Capital Region Development Authority (CRDA), Farmers of Amaravati
- What
- Extension of government guarantee and letter of comfort for a Rs. 7,500 crore loan, creation of three regional zones for balanced development
- When
- The government order was issued on Friday, CM announced regional zones on Saturday
- Where
- Amaravati, Andhra Pradesh
- Why
- To facilitate the development of the greenfield capital city of Amaravati and ensure balanced growth across the state
Government Support
Farmer Concerns
Development Focus
Government Support
The government is committed to the development of Amaravati as a capital city and ensuring balanced growth across the state.
Farmer Concerns
Farmers have concerns about land pooling and the impact on their livelihoods.
Tax Exemption
Government Support
The government is working to secure capital gains tax exemption for Amaravati farmers.
Farmer Concerns
Farmers are seeking assurances and clarity on tax exemptions and benefits.
- Loan Amount
- Rs. 7,500 crore
- Lending Institution
- National Bank for Financing Infrastructure and Development (NaBFID)
- Guarantee Provider
- Andhra Pradesh Government
- Recipient Authority
- Capital Region Development Authority (CRDA)
- Guarantee Commission
- 2% of the guaranteed amount
- Purpose
- Development of Amaravati, the greenfield capital city
- Conditions
- CRDA must meet debt servicing obligations from its own resources
- Regional Zones
- Three regional zones to be created for balanced development
- Farmer Concerns
- Addressing grievances and ensuring benefits for land pooling
