The construction of Amaravati, the capital of Andhra Pradesh, has received a significant boost with the World Bank releasing the first tranche of Rs. 3,535 crores. This amount is part of a sanctioned loan of Rs. 6,700 crores, and the funds are expected to be deposited in the state government’s account today, marking a crucial step forward in the capital’s development.
The state government had already initiated construction activities in Amaravati using its own funds. With the World Bank funds now released, the government is optimistic that the Asian Development Bank (ADB) will soon disburse its first tranche from the sanctioned loan of Rs. 6,700 crores. In total, Andhra Pradesh is expected to receive Rs. 13,600 crores from these two banks.
Additionally, the Centre has extended Rs. 1,400 crores as special assistance to Andhra Pradesh. The state government has also secured approval for the mobilization of Rs. 11 crores from HUDCO and is working towards acquiring another Rs. 5,000 crores from a German financial institution.
Although the World Bank and ADB loans were approved in December, the funds were delayed due to objections raised by certain individuals questioning Amaravati’s suitability as the state capital. These objections resulted in a two-month delay in the decision-making process.
With the release of the first tranche of funds, the path is now clear for accelerating the capital construction works in Amaravati.
