In order to implement welfare schemes in the state, YS Jagan Mohan Reddy-led Andhra Pradesh government has been using all ways to raise funds related to selling liquor bonds and asking permission from Centre for additional borrowings from the open market.
The state government is now planning to sell the lands in Amaravati as it has already crossed the borrowing limit. The lands were acquired for the construction of the capital city by the ex-government under land pooling. The government has issued an order GO 389 allowing AP Capital Region Development Authority to auction 248.34 acres of land owned in Amaravati capital region.
The minimum value adjusted by the directorate for these lands is Rs 10 crore per acre. Hence it would raise a minimum of Rs 2,480 crore from the auction of these lands. The government will get more money, if it gets more through action. As per sources, the chief minister has decided to raise funds on its own by auctioning of the government lands, since the banks have refused to provide loans to AP directorate.
Starting with 50 acres of land next year, the AP Capital Region Development Authority will sell another 600 acres in Amaravati through auction over a period of time.