Chandrababu New Scheme, Amaravathi Bonds

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ChandrababuChandrababuAndhra Pradesh Chief Minister N Chandrababu Naidu is going through toughest phase in his political career, though his party is in ruling. He has bigger tasks ahead to construct capital Amaravathi as world class city and also to run the government with lack of funds. At least few major buildings are to be constructed in Amaravathi by 2018 in order to prove his loyalty, in view of a fact that elections will fall in 2019. Naidu is bringing funds from various sources for monthly expenses; hence, it is harder for him to raise funds for Amaravathi construction in parallel.

It is heard that, Babu is looking for best options to accomplish his mission. He decided to cash on sentiment of Amaravathi. When he publicly asked for funds towards construction of new capital city for AP, post state bifurcation, many had offered money, gold and other things. Now, Babu has decided to release bonds with intent of amassing funds for Amaravathi. In fact, he is planning to give tax exemptions to those who buy the ‘Amaravathi bonds’. Estimated budget for the first phase of the construction is around Rs 60,000 crores. It is highly impossible to obtain such amount from the Centre.

In these circumstances, Babu made his mind to raise funds through bonds. However, political analysts questioned, is this a right move? Why because, huge corruption has allegedly taken place in Godavari Pushkaralu arrangements costing Rs 1600 Cr for govt. So, chances for corruption will be high for giant project like ‘Amaravathi construction’. More importantly, Govt. needs to get SEBI permissions to go for these bonds. State will run into further debts, if they collect funds through these bonds, some economists warned.