The Andhra Pradesh government plans to borrow ₹5,000 crore from public sector Housing and Urban Development Corporation Ltd (HUDCO) to purchase over 12,000 acres to be distributed to the landless poor across the State.

The government had earlier announced a plan to distribute house sites and housing units to over 25 lakh beneficiaries on Ugadi, Telugu New Year Day, that falls on March 25. HUDCO has already ‘agreed’ to lend ₹5,000 crore, according to official sources.

A total of over 40,000 acres would be required for distribution to the landless poor. Of this 27,000 acres have already been identified while the remaining 15,000 acres have to be acquired from private individuals.

The State government had also approached LIC Housing Finance for funding the scheme by treating it as a housing project.

Capital row

The row over shifting of the executive capital to Visakhaptanam continued on Tuesday in the wake of the Centre saying in Parliament that it had ‘no role’ in any decision and it was for the State government to decide. Farmers and activists of the TDP continued their protests in Amaravati.