Amaravati: A New Dawn for Andhra Pradesh

The World Bank and the Asian Development Bank have pledged $1.6 billion for developing Amaravati capital city in Andhra Pradesh. The central government will fund an additional $140 million. Funds will be released starting January next year with a repayment supported by the central government.

The World Bank and the Asian Development Bank have pledged a combined USD 1.6 billion (Rs 13,600 crore) to fund the first phase of Amaravati capital city in Andhra Pradesh. The funds are expected to start flowing in from January next year, as confirmed by a senior government official.

The total phase-I development cost stands at Rs 15,000 crore, with the central government contributing the remaining Rs 1,400 crore. The funding will be dispensed over a five-year period. The International Bank for Reconstruction and Development, a part of the World Bank, and the ADB have committed USD 800 million each for the project.

The Centre will handle the repayment of loans from the World Bank and ADB, as explained by the official. Chief Minister N Chandrababu Naidu announced that work on Amaravati Phase-I will begin in December, with the project's planning drawing on lessons from previous attempts.

(With inputs from agencies.)