The TDP cabinet has cleared the decks for raising Rs 2,000 crore through the Bombay Stock Exchange’s electronic bidding platform at a coupon rate of 10.32% payable quarterly with a basic issue size of Rs. 1,300 crore and a green shoe option of Rs 700 crore for funding the construction of Capital city Amaravati.
Briefing media persons on the decisions taken by the Cabinet at its meeting on Thursday, Minister for Information and Public Relations K Srinivasulu said a standing committee was being formed to oversee the issuance of the bonds, evaluate the coupon rate and take care of fee and other arrangements.
What is this green shoe option?
It basically means that after bonds worth Rs 1,300 crore are sold, a further Rs 700 crore can be sold by the underwriter if the demand proves higher than expected.
Which government entity in recent times is paying an interest rate of 10.32%? Will Chandrababu Naidu be paying this amount from his pocket? No, absolutely not! It is the people of Andhra Pradesh.
Will the persons who receive the payment for the bonds be genuine persons?
There is no guarantee because the TDP could well have asked its own people to be prepared beforehand with the bids.
What is this obsession with Amaravati, this madness that is destroying the ecosystem of the region and taking precedence over everything else?
Do the existing cities of Andhra Pradesh in no way qualify for a capital city? Did not Shiva Rama Krishna committee, appointed by centre suggest that the capital be located anywhere but Amaravati?
This is definitely not a people’s capital, it is only a giant real-estate venture of the Kammas that will bleed the rest of the communities dry by the time it is complete.
