The Andhra Pradesh Capital Region Development Authority (APCRDA) has signed an agreement with the Housing and Urban Development Corporation (HUDCO) for a $1.32 billion loan to develop Capital Amaravati. The agreement was formalized at Chief Minister N Chandrababu Naidu's residence in Undavalli.

The event was attended by HUDCO CMD Sanjay Kulshrestha, Director (Corporate Planning) M Nagaraj, Finance Director Daljit Singh Khatri, Vijayawada Regional Chief BSA Murthy, APCRDA Commissioner K Kannababu, Additional Commissioner M Naveen, and Principal Secretary (Municipal Administration and Urban Development) S Suresh Kumar.

According to Municipal Administration and Urban Development Minister P Narayana, the first phase of Amaravati’s development is estimated at $3.12 billion, with a total projected cost of $6 billion.

The World Bank and the Asian Development Bank have already committed $1.8 billion for the project. Additionally, HUDCO has sanctioned $528 million for housing projects in the state.

APCRDA officials are optimistic that the funding from HUDCO will accelerate the development of Capital Amaravati.