Andhra Pradesh Municipal Minister Narayana has clarified that the central government will bear the entire cost of the Amaravati railway line construction. He stated that since the state government only needs to arrange land, they will soon decide whether to acquire land or use land pooling.

Narayana explained that the Central Finance Ministry has clearly indicated their commitment after the budget announcement. He said, “First they told us what they’re giving, and now we’re having further discussions about how much will be grant and how much won’t be.

Currently, two banks have agreed to provide Rs 15,000 crore for the project. The Chief Minister Nara Chandrababu Naidu is in talks with the Centre to determine the grant portion of this amount. Additionally, the state will secure Rs 11,000 crore through HUDCO and approximately Rs 5,000 crore from KfW Bank of Germany, total of Rs 31,000 crore.

After implementing land pooling and providing land to farmers, about 5,000 acres will be available for development. The minister explained that loans secured through these various sources will be used to build Amaravati, with the repayment coming from the increased land values.

Narayana noted that Rs 6,000 crore has been immediately allocated in the budget. Since bank loans will take some time to materialize, they will initially use this budget allocation and later clear it when the loan amounts come through.

Narayana confirmed that the central government will take complete responsibility for the railway track construction. He concluded by saying they will soon decide whether to arrange land through acquisition or land pooling.