The World Bank has approved a substantial loan of Rs 6,800 crore (approximately $800 million) for the development of Amaravati, the capital city of Andhra Pradesh. This approval marks a significant milestone in the city’s development journey, following an earlier loan of Rs 6,700 crore from the Asian Development Bank (ADB).
Key Development Plans
The World Bank has praised Amaravati as an exemplary model for urban transformation in India. Current population estimates show about 100,000 residents in Amaravati, with significant growth expected in the coming decade. The master plan, covering 217 square kilometers, aims to accommodate 3.5 million residents by 2050.
Employment and Housing Initiatives
The development project includes ambitious plans for job creation, with an estimated 50,000 new positions to be created within the next five years. The city has reserved 22% of its housing for affordable accommodation to ensure inclusive growth. Additionally, comprehensive training programs will be implemented for 17,000 individuals, including 10,000 women, focusing on higher-paying job opportunities and improved living standards.
Infrastructure Development
The World Bank’s support will facilitate extensive infrastructure development across the city. This includes the development of comprehensive road grid systems and public transportation networks. The project will also implement advanced flood mitigation measures, along with state-of-the-art water management systems and waste water treatment facilities.
Environmental Considerations
Environmental sustainability stands at the forefront of Amaravati’s development vision. The project incorporates smart and green technology integration throughout its planning, emphasizing low-carbon solutions and nature-based approaches. Particular attention has been given to enhancing disaster management capabilities and ensuring climate-resilient infrastructure throughout the city.
Loan Terms and Financial Details
The World Bank loan comes with favorable terms, including a 29-year maturity period and a 6-year grace period. The loan will be received in Japanese Yen, supporting a total project value of Rs 33,137.98 crore for 45 engineering works.
Government Initiatives
Nara Chandrababu Naidu government has significantly accelerated development work in Amaravati. Current plans include the construction of quarters for IAS and gazetted officers, comprehensive flood prevention programs, extensive road development, and essential infrastructure facilities. The TDP lead government has set an ambitious target to complete the capital city development within three years, bolstered by additional funding secured from HUDCO (Rs 11,000 crore) and German KfW (Rs 5,000 crore).
