The World Bank, alongside the Asian Development Bank (ADB), has indicated readiness to provide ₹15,000 crore in loans for the development of Andhra Pradesh’s capital, Amaravati, marking a pivotal moment in the city’s transformation into a world-class capital.
The loan, expected to be processed by November 15, 2024, with an advance of ₹3,750 crore already on the table, symbolizes financial support and international validation of Amaravati’s potential.
The funding structure involves a significant contribution from the central government, sharing 90% of the loan burden, with the state picking up the remaining 10%.
Chandrababu pitches Amaravati as a self-sustaining city
This financial backing comes in the wake of recent discussions between top executives from global financial institutions and Chief Minister Chandrababu Naidu, who elucidated his vision for Amaravati not just as a capital but as a global investment hub. The chief minister emphasized that Amaravati would be self-sustaining and set new benchmarks in urban development and sustainability.
The latest development follows the Union Budget 2024-25 announcement by Finance Minister Nirmala Sitharaman, where a special financial package was set aside for Amaravati. The funding from multilateral agencies like the World Bank and ADB is part of this broader financial support, indicating a collaborative approach between the state, central government, and international finance.
What will the loan be used for?
The proposed loan, as confirmed by sources close to the negotiations, will facilitate the completion of various infrastructure projects in Amaravati. This includes the development of residential complexes, legislative buildings, and essential infrastructure like roads and water management systems.
This financial injection is poised to revive construction activities, boost the real estate market, and create employment opportunities, thereby rejuvenating the economic landscape of Andhra Pradesh.
A new dawn for Amaravati
Amaravati, since its conception post the bifurcation of Andhra Pradesh, has seen its share of political upheavals, with discussions around decentralizing the capital to three different cities. However, recent developments, including the High Court’s rulings and government decisions, have reaffirmed Amaravati’s status as the state capital, thereby necessitating significant investment for its development.