Naidu to borrow Rs 500 cr more for Amaravati!

Notwithstanding the criticism from various quarters including economists and the opposition parties over the floating of “Amaravati Bonds” for Rs 2,000 crore last month amidst a lot of hype and publicity, Telugu Desam Party president and Andhra Pradesh chief minister N Chandrababu Naidu is planning to go in for more public borrowings.

According to the latest reports, the Naidu government is planning to raise another Rs 500 crore through “public issue” of Amaravati bonds. This is apart from, raising of Rs.2000 cr raised by issuing “capital bonds” on BSE last month.
This is first of its kind in India, where state government is raising amount via “public issue” where individuals can bid for Amaravati shares.

The public issue would be raised in one or more tranches together not exceeding Rs 500 crore.The government called for request for quotation (RFQ) from various agencies to be appointed as lead managers who would mobilise funds from public.The pre-bid qualification would be assessed by September 25 and the last date for bidding is October 5. The tenure of the bonds is three to 15 years.

The interest rate and other details would be revealed once the lead managers are appointed, official sources said.