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The Andhra Pradesh cabinet approved a government guarantee allowing APTIDCO to raise an INR 4,451 crore term loan from HUDCO to fund housing construction and infrastructure under Pradhan Mantri Awas Yojana (Urban). The move is aimed at completing over 2.6 lakh houses by mid-year and closing all pending PMAY projects by October. The cabinet also cleared decisions related to medical education upgrades, pension rules, land allocation, and power financing as part of a broader development agenda.
The Andhra Pradesh cabinet approved a state government guarantee to enable the Andhra Pradesh Township and Infrastructure Development Corporation (APTIDCO) to secure a term loan of INR 4,451 crore from the Housing and Urban Development Corporation Ltd (HUDCO). The funding will be used for construction of houses and development of related infrastructure under the Pradhan Mantri Awas Yojana (Urban). Advertisement
The decision is expected to support faster execution of ongoing housing projects across the state. The government has set a target to complete and hand over around 261,000 housing units by June this year. Officials indicated that all pending PMAY (Urban) projects are planned to be completed by October, with the larger goal of ensuring permanent housing for all eligible beneficiaries by 2029.
Housing projects under PMAY (Urban) in Andhra Pradesh have faced delays in the past due to funding gaps and cost escalations. The loan guarantee is intended to improve liquidity and allow uninterrupted construction, particularly for infrastructure components such as roads, drainage, water supply, and electricity within housing layouts.
In the same meeting, the cabinet approved upgrading the Government Medical College at Piduguralla through a public-private partnership model. Additional teaching and non-teaching posts were sanctioned, and the attached government hospital was formally integrated with the medical college to strengthen clinical training facilities.
The cabinet also approved amendments to pension rules to allow benefits to be transferred to minor children in cases where both parents have passed away. In another decision, 500 square yards of residential land in Visakhapatnam was allotted to national-level athlete Yarraji Jyothi, along with approval for a government job after completion of her education.
Several land-related decisions were cleared, including surrender of land to the forest department to facilitate infrastructure works linked to the Krishnapatnam Port container terminal. The cabinet also approved cancellation of certain stalled PMAY (Urban) tenders to allow restructuring and faster execution.
Additionally, a special term loan of INR 900 crore from HUDCO was approved for the Andhra Pradesh Power Finance Corporation Ltd to support power procurement, including coal purchases, and to meet short-term operational requirements.
Source PTI
FAQ
Q1. What decision did the Andhra Pradesh cabinet take regarding PMAY housing?
The Andhra Pradesh cabinet approved a state government guarantee that will allow the Andhra Pradesh Township and Infrastructure Development Corporation (APTIDCO) to raise a term loan of INR 4,451 crore from the Housing and Urban Development Corporation Ltd (HUDCO). The funds will be used to accelerate housing construction and related infrastructure under the Pradhan Mantri Awas Yojana (Urban).
Q2. Why is the government providing a guarantee for this HUDCO loan?
The guarantee is intended to improve liquidity and ensure uninterrupted funding for ongoing PMAY (Urban) projects. Several housing projects had slowed due to funding gaps and rising costs. By backing the loan, the state government aims to speed up construction and prevent further delays.
Q3. How many houses are targeted for completion under this plan?
The state government has set a target to complete and hand over around 2.61 lakh housing units by June this year. Officials also stated that all pending PMAY (Urban) projects across Andhra Pradesh are expected to be completed by October.
Q4. How will the loan funds be used on the ground?
The loan will be utilised not only for house construction but also for developing essential infrastructure within housing layouts. This includes roads, drainage systems, water supply networks, and electricity connections, which are critical for making the housing units fully habitable.
Q5. What is the long-term housing goal of the Andhra Pradesh government?
Beyond the immediate targets, the government aims to ensure permanent housing for all eligible beneficiaries in the state by 2029. The accelerated completion of PMAY (Urban) projects is a key step toward achieving this objective.
Q6. Were any PMAY-related administrative decisions taken by the cabinet?
Yes. The cabinet approved the cancellation of certain stalled PMAY (Urban) tenders. This will allow the government to restructure these projects and reissue tenders in a manner that enables faster and more efficient execution.
Q7. What other major decisions were approved in the same cabinet meeting?
The cabinet cleared several non-housing decisions, including upgrading the Government Medical College at Piduguralla through a public-private partnership model. It also sanctioned additional teaching and non-teaching posts and formally integrated the attached government hospital with the medical college.
Q8. Were there any welfare-related policy changes announced?
The cabinet approved amendments to pension rules that allow pension benefits to be transferred to minor children in cases where both parents have died. This move aims to strengthen social security support for vulnerable families.
Q9. Did the cabinet take any decisions related to land allocation or sports promotion?
Yes. The cabinet approved the allotment of 500 square yards of residential land in Visakhapatnam to national-level athlete Yarraji Jyothi. It also cleared a proposal to provide her with a government job after she completes her education.
Q10. What other infrastructure and financing measures were cleared?
The cabinet approved the surrender of certain land parcels to the forest department to facilitate infrastructure works linked to the Krishnapatnam Port container terminal. Additionally, it sanctioned a special term loan of INR 900 crore from HUDCO to the Andhra Pradesh Power Finance Corporation Ltd to support power procurement, including coal purchases, and meet short-term operational needs.
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