Thanks to the Andhra Pradesh government’s several welfare schemes, the government’s financial status has never been sound. Added to that is the fact that the coronavirus pandemic has brought upon a severe crisis, and on top of that, the state doesn’t yet have a solid capital that can generate good revenue for the state. All of these have resulted in the AP government resorting to taking loans for everything and trying new ways of taking loans.
The brand new idea that the AP government has come up with, to generate loans, is to mortgage the government’s property in the city of Visakhapatnam. The AP government has established the “State Development Corporation” to identify properties that can be mortgaged, through which funds can be generated. The properties have already been identified and a report has also been readied, and in the next cabinet meeting, the decision on what properties will be mortgaged will be taken.
Not only this but a “Beach Road Corridor Corporation” is also being planned to be set up by the government, in which the beach road corridor will be examined and the places that can be mortgaged will be identified, which will then be given away for development, through which the government intends to generate funds. Already, 570 acres of lands have been identified along the Visakhapatnam-Bhimili-Bhogapuram beach road, where the government intends for the construction of resorts, restaurants and golf courts along the beach road, with the help of external parties.
The State Development Corporation has already taken loans worth Rs. 25,000 Crores and the government is planning to take loans worth Rs. 16,000 Crores with the help of its Medical Corporation. And now, more loans are going to be generated with the Beach Road Corridor Corporation. Indeed, the AP government seems to be mastering new and creative ways of generating loans.