Following years of delays and indecision, the aspiration to build Amaravati has moved a gigantic step forward. The World Bank has approved ₹3,535 crore to the Andhra Pradesh government, which is a decisive turning point in the capital city’s stalled development. This fund infusion follows almost six years of obstacles that denied Amaravati global funding.
YS Jagan Mohan Reddy, while serving as Chief Minister, initially observed that he had no problems with Amaravati as the capital. But, by his actions, he is said to undermine a movement for international funding. For example, in 2018, when the World Bank was interested in supporting Amaravati’s development, Jagan’s government expressed serious concerns about the project viability and it subsequently withdrew funding. This added a six-year delay before Amaravati could resume developing.
With his comeback as Chief Minister, N. Chandrababu Naidu lost no time in getting Amaravati back on the development track. With his close relationship with the Central government, he made sure that the Narendra Modi government offered the financial assurances required to retrieve international support.
This comforted both the World Bank and the Asian Development Bank (ADB), and thus they sanctioned a total funding of ₹13,000 crore for Amaravati—₹6,500 crore each from both the institutions. After clearing all the regulatory procedures, the first tranche of ₹3,535 crore was successfully credited into the account of the state government on Wednesday.
This funding milestone is being regarded as a game-changer in the development of Amaravati. Experts opine that with international financial institutions supporting the project, further investments are sure to follow, ending the uncertainty over the future of the capital city.
In addition, since the World Bank has already approved the funding, the Asian Development Bank is also set to disburse its share shortly. This promises that the long-awaited development of Amaravati is now finally on schedule, giving hope to the thousands who have been eagerly waiting for the capital city’s make-over.