Andhra Pradesh Govt Inks ₹11,000 Crore Loan Deal with HUDCO for Amaravati Development

The Andhra Pradesh Capital Region Development Authority (CRDA) and the Housing and Urban Development Corporation (HUDCO) have signed a ₹11,000 crore loan agreement for the development of Amaravati, the state’s greenfield capital. The deal was formalised in the presence of Chief Minister N Chandrababu Naidu at his residence in Undavalli, Guntur district.

HUDCO’s Approval and Loan Agreement

The agreement follows a HUDCO board meeting in Mumbai on 22 January, where the loan proposal received approval. The funding is aimed at expediting the construction of Amaravati, envisioned as a modern capital city. Municipal Minister P Narayana, HUDCO CMD Sanjay Kulshrestha, and senior officials were present at the signing.

Government’s Vision for Amaravati

The state government is committed to transforming Amaravati into a world-class capital with sustainable infrastructure. The ₹11,000 crore loan will facilitate large-scale development projects, reinforcing the government’s commitment to urban planning and modernisation. The partnership between HUDCO and CRDA is expected to accelerate progress in line with the state’s development agenda.

HUDCO Share Performance 

As of March 17, 2025, at 2:10 PM, the shares of HUDCO Ltd are trading at ₹187.40 per share, reflecting a surge of 3.67% from the previous closing price. Over the past month, the stock has registered a gain of 2.29%

Conclusion

The loan agreement marks a significant milestone in Andhra Pradesh’s efforts to develop Amaravati as its capital. With HUDCO’s financial backing, the state aims to realise its vision of a state-of-the-art city with advanced infrastructure.

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