AP Capital Amaravati to Receive a Loan of Rs.15,000 Crore

CRDA Commissioner to Sign an Agreement with ADB and World Bank in Delhi

• As part of the ‘Comprehensive Sustainable Urban Development Project’ of the capital Amaravati, the World Bank and ADB are jointly providing a loan of approximately Rs.13,500 crore for the works undertaken in the first phase with an outlay of Rs.15,000 crore. The remaining Rs.1,500 crore will be mobilized by the state government with the cooperation of the central government.

• With the World Bank and ADB loan approval process reaching the final stage, the state government has issued a GO appointing CRDA as the implementing agency and authorizing the CRDA Commissioner to enter into an agreement with those institutions on behalf of the state government. Accordingly, the Commissioner will sign the loan agreement in Delhi on Monday and Tuesday.

• The government has stated that a special head of account will be created in the budget for the utilization of funds. Bills related to the works undertaken in the capital will be deposited in a special account with the CRDA.

Loan Sanctioned at a Rapid Pace
The loan from the World Bank and ADB to Amaravati has been sanctioned at a very fast pace. On August 22 this year, CRDA sent a proposal to the central finance ministry seeking financial assistance of Rs.15,000 crore for the capital. On September 11, the central finance ministry informed the government that both institutions had agreed to provide a loan of Rs.6,750 crore each to Amaravati. From there, discussions and consultations between the World Bank, ADB representatives, the central finance ministry, the state government, and CRDA officials took place at a rapid pace. Both banks are providing loans under the Program for Results and Results-Based Lending policies.

Programs to be Undertaken
As part of the capital development project… construction of major roads, utility ducts, storm water drains, reservoirs for flood prevention, canals, lift schemes, development of LPS layouts where lands were allotted to farmers, drinking water supply, sewerage and purification systems, legislative assembly, high court, secretariat, departmental office buildings, and residential buildings will be undertaken. The funds from the World Bank and ADB will be used for these.

Summary

The Andhra Pradesh government has secured a significant loan of Rs.15,000 crore from the World Bank and ADB for the development of the new capital city, Amaravati. This funding will be used to construct various infrastructure projects, including roads, drainage systems, and government buildings. The rapid approval of this loan highlights the government’s commitment to developing Amaravati into a world-class capital city.