The Panchayat Raj Institutions can borrow loans for any of the following purposes falling within the scope of functions assigned to them under Sections 45, 46, 161, 162 and 192 of the Andhra Pradesh Panchayat Raj Act, 1994.(a)For construction of commercial complexes, in identified areas, which will earn attractive annual returns of 20% or more on the investments annually,(b)For agricultural based projects like raising of usufruct yielding trees, coconuts, or other orchards coupled with raising of fisheries, silvi-culture plants, raising of pastures and grasses and such other composite schemes where proper irrigation facilities are available:(c)For location and establishment of new markets within the scope of the provisions of A.P. Panchayat Raj Act, 1994;and(d)For any other suitable schemes by which the income of a local body can be augmented by making a one time investment.
