The Government of Andhra Pradesh today strongly supported its action of offering higher interest rates for Amravati Bonds, floated to mobilise resources for the construction of its new capital city Amaravati.
Replying to short notice question in AP Assembly today, the Minister for Municipal Administration P Narayana the Amaravati bonds over subscribed with in one hour and fetched Rs 2000 cr. He said that the bonds were issued for Rs 1300 cr and decided to retain Rs 700 cr additional subscription by exercising the green shoe option with an interest rate of 10.32 per cent.
Referring to rate of interest of Amaravati bonds, the minister said that it depends on the rating of the bonds. He said Amaravati bonds got a rating of A+ and the interest rate was fixed at 10.32 per cent as per the rating.
He said that arranged fee of 0 .85 per cent was paid to the concerned agency for floating the bonds while several other states payed one to two per cent. The Minister said that Amaravati capital would be developed at a stretch of 2017 km at an estimated cost of RS 48,000 cr. The state govt prepared DPR for capital development and sent to central govt, which released Rs 1500 cr so far.
He said concerned utilisation certificates were submitted to the Centre and director of NITI Ayog officials inspected the ongoing works in Amaravati and accepted that UCs were issued for Rs 1632 cr. The NITI ayog also recommended for release of rs 662 cr and the amount was not released so far.
The Minister said that tenders were called for capital development works to a tune of Rs 26,000 cr and the works are going on. He said several banks came forward to extend financial assistance of Rs 10,000 cr and the state govt has to deposit 20 per cent of the shares.