Exciting news for Andhra Pradesh as the World Bank gives a thumbs up to a whopping 15,000 crore loan for Amaravati, the state’s ambitious new capital project. This major breakthrough comes after months of tireless efforts by the state government, backed strongly by support from the central government.
The total bill for Amaravati’s development is expected to hit a staggering 49,000 crore. To make this vision a reality, both the World Bank and the Asian Development Bank (ADB) are joining forces to provide the necessary funds. The Capital Region Development Authority (CRDA) is set to receive an initial boost of 15,000 crore in the current financial year, kickstarting the project in earnest.
What’s for Amaravati? The plans include top-notch infrastructure, carefully designed layouts for farmers who gave up their land, and impressive government buildings including the Legislative Assembly, High Court, and Secretariat. With the first chunk of funding on its way, CRDA is busy fine-tuning construction plans to hit the ground running.
The approval process for this mammoth loan has been remarkably swift, breaking records for projects of this scale. World Bank teams have already made several visits to the capital site, and crucial meetings are lined up for November. If all goes according to plan, the loan agreement could be inked by mid-November, potentially allowing construction to begin as early as December.
What makes this loan extra special is its favorable terms. There’s a generous 15-year grace period before repayment starts, and the interest rate is kept below 4%. Even better, the central government has pledged to shoulder 90% of the repayment burden, with the state only responsible for 10%.
This financial boost is more than just money – it’s a huge vote of confidence in AP Capitial region Amaravati’s potential. It signals the start of major construction work and brings Andhra Pradesh’s dream of a modern, world-class capital city one big step closer to reality.
As the CRDA gets ready to start offering contracts and begin construction, Amaravati is set to turn from a plan into a real city being built. This exciting journey is just starting, and Amaravati’s story is only beginning!
-Sanyogita
