Hyderabad: AP capital project faces funding problems. After pooling of 30,000 hectares for the capital the government will face a big challenge in front of land development. To build roads, drains and other facilities the government needs around Rs 25,000 to Rs 30,000 crore. 

Agriculture Minister Prattipati Pulla Rao who is a member of the Cabinet subcommittee on the sharing of the land, said the government will develop costs Rs 75 lakh to Rs 1 land crore per acre. Earlier, the AP government planned to give the land to developers by giving them a share. But now he has decided to develop on their own. 

Currently all funds raised by the government has been used for suspension of agricultural loans. For this, the Government has launched a Farmer Empowerment Corporation and has allocated Rs 5,000 crore. 

Department of Finance estimates that the waiver of agricultural loans requires about Rs 25,000 crore. Even if the government wants to develop the land gradually requiring huge amounts. 

At present the government of AP has to rely on loans and Central assistance. The government has paid around Rs 9,000 crore in the last six months of the fiscal year. The limit for loans in a year is around Rs 20,000 crore. If the government decides to go for loans to get about Rs 10,000 crore this year. So the only option left is the center. 

Finance Minister Rama Krishnudu Yanamala bifurcation AP said Act is not clear on the central assistance for the capital city. He said the center is saying if the state is ready to land then he will sanction the funds. Mr Yanamala said the state will ask the Centre to sanction funds for land development.