AP Cabinet Approves A Whopping Rs. 37,112 Cr Loan By CRDA For Amaravati

Amaravati: The Andhra Pradesh cabinet Okayed a proposal for the construction of Amaravati by the Capital Region Development Authority (CRDA) with a total financial outlay of Rs. 55,343 crore. This includes expenditure on the construction of buildings, roads, basic infrastructure amenities among others. The cabinet also lent its nod to the CRDA borrowing Rs. 37,112 crore by hypothecating projects in the capital and raising Rs. 500 crore through public bonds.

Interestingly, the AP cabinet also agreed to the government standing guarantee to the CRDA's loan. That is not all. The cabinet meeting chaired by chief minister Nara Chandrababu Naidu, also approved a proposal to borrow US $715 million under Externally Aided Projects (EAP).

The Chandrababu Naidu regime's borrowings with elections barely over two months away, cast a shadow on the economic situation of the state. AP is already reeling under an economic crisis, not to speak of widespread drought conditions. Analysts and political observers compare Chandrababu's current borrowing spree in the name of capital development as a case of "Nero fiddling while Rome is burning."

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