Central Grants Andhra Pradesh Over Rs.4,200 for Amaravati Capital Development Project
Following the initial distribution of $205 million from the World Bank, the Central Government has granted Andhra Pradesh more than Rs 4,200 crore for the Amaravati Capital Development project.
The Asian Development Bank (ADB) and the World Bank jointly agreed to provide $1600 million (Rs 13,600 crore), or $800 million each, for the phase-I development of Amaravati Capital City.
The Center is expected to contribute the remaining Rs 1,400 crore of the Rs 15,000 crore that the Central Government has committed for phase-I of the development.
According to World Bank records, the project is believed to have gone into force on January 22 of this year, and last month, the first $205 million program advance payment was made.
The sum issued is said to fall under the category of "Mobilization Advance," which is the name given to the 25 percent of the total pledged amount that the Center has agreed to provide.
Following some progress and the submission of invoices or utilisation certifications by the state government, the next installment of the agreed cash would be released.
Regarding several World Bank complaints that expressed worries about livelihood and environmental issues, stating that the World Bank has a robust grievance procedure that is separate from its board.
Additionally, a six-member delegation—three from WB and one from the other, are observed to have visited Amaravati last month and, following an investigation, expressed approval.
Prime Minister Narendra Modi is expected to resume building of the Amaravati greenfield capital city in April, according to AP chief secretary K Vijayanand. This will include the restart of approximately Rs.1 trillion worth of work.
In addition, $800 will be provided by the International Bank for Reconstruction and Development (IBRD), a division of the World Bank that offers loans and guarantees to middle-income and creditworthy low-income nations.
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The WB document states that the Andhra Pradesh Capital Regional Development Authority is the implementing agency and the Department of Economic Affairs at the Center is the borrower.