The cash-strapped Andhra Pradesh government headed by chief minister Y S Jagan Mohan Reddy has been trying all options to raise funds to implement welfare schemes in the state, including selling of liquor bonds and seeking permission from Centre for additional borrowings from open market.
Since it has already crossed the borrowing limit, the state government is now planning to sell the lands in Amaravati, acquired for the construction of capital city by the previous Telugu Desam Party government under land pooling.
As part of the strategy, the government has issued an order (GO 389) permitting AP Capital Region Development Authority (APCRDA) to auction 248.34 acres of land acquired in Amaravati capital region.
The minimum value fixed by the government for these lands is Rs 10 crore per acre; so, it would raise a minimum of Rs 2,480 crore from the auction of these lands. If the government gets more through auction, it would get more money.
Out of these 248.34 acres, nearly 100 acres were allotted to B R Shetty Medicity and the remaining 148 acres were given to Kings College, London. The state government had already cancelled the agreements with these firms and took back the lands.
Now, these lands will be put up for auction. A decision to this effect was taken at the recent meeting convened by chief minister Y S Jagan Mohan Reddy to review the urban development ministry.
“Since the banks have refused to give further loans to the state government, the chief minister decided that it should raise funds on its own by auctioning of the government lands,” sources said.
Subsequently, the APCRDA will sell another 600 acres in Amaravati through auction over a period of time, starting with 50 acres of land next year, sources added.