Andhra Pradesh Chief Minister N Chandrababu Naidu.
Credit: PTI File Photo
Hyderabad: In a significant boost to Chief Minister N ChandrababuNaidu's dream project of Amaravati, the World Bank (WB) and Asian Development Bank (ADB) have accepted the Andhra Pradesh government's proposal to provide fund support of $1.6 billion for the construction of the capital city.
The Department of Economic Affairs (DEA) recently informed the Andhra Pradesh government that both international banks have accepted the Andhra Pradesh Capital Region Development Authority's (APCRDA) proposal- 'The Amaravati Inclusive and Sustainable Capital City Development Program'.
Each of these two banks will provide fund support of Rs. 800 million under the Program for Results (PforR) and Result-Based Lending (RBL) programs, respectively. The Andhra Pradesh government submitted funding proposals totaling $1.786 billion, or Rs 15,000 crore, and the state government, with support from the union government, will cover the remaining share.
In the first budget after NDA came to power a few months ago, finance minister Nirmala Sitharaman announced that the union government will arrange funding to the tune of Rs 15,000 crore through multilateral development agencies to build Amaravati.
After the budget announcement, APCRDA had forwarded the project proposals to DEA. Since then, representatives from the World Bank and Asian Development Bank have visited Andhra Pradesh and held discussions multiple times with the government officials and also the farmers from the capital region.
'The Amaravati Inclusive and Sustainable Capital City Development Program' focuses on creating a safe and sustainable urban ecosystem through key infrastructure activities.
With the funds from international agencies, APCRDA plans to construct trunk roads and utility ducts for essential services, storm water drainage, and flood mitigation through the development of streams, retention reservoirs, and flood defence systems. It will also develop roads, utilities, and green spaces in LPS zones, establish a 24x7 clean water supply system and sewerage system, construct key public buildings adhering to green standards, and strengthen institutional capacities.
Due to the little to nil allocation of funds in the last five years by the previous YSRCP government, Amaravati looked like an 'abandoned city', with many almost finished high-rise buildings and other structures standing testimony to the neglect. TDP is the second important ally in the NDA after the BJP.