Andhra CM Naidu taps into World Bank to fund his dream capital Amaravati

The authority that is overseeing the development of Amaravati put the total cost of capital construction at Rs 48,115 crore, which might go up to Rs 58,000 crore in the next 20 years.

With further financial support from the Centre becoming uncertain following the break-up in the TDP-BJP alliance, Andhra Pradesh chief minister N Chandrababu Naidu has decided to tap into all possible resources to mobilise funds for his dream project of giving capital Amaravati a concrete shape before the 2019 general elections.

Going by the pace of work, Naidu had been facing an uphill task to showcase progress due to the paucity of funds. But with financial agencies such as Housing and Urban Development Corporation (Hudco) and World Bank sanctioning funds, besides commercial banks agreeing to loans, the scenario may change soon. During a review meeting recently, the Andhra Pradesh Capital Region Development Authority (APCRDA), which is overseeing the development of Amaravati, put the total cost of capital construction at Rs 48,115 crore, which might go up to Rs 58,000 crore in the next 20 years.

The Centre, however, gave only Rs 1,500 crore in the last three years, while the state sent proposals for another Rs 1,000 crore for this year.

“But not a single rupee was allocated in the Union budget for Amaravati this year,” Naidu said in the meeting. The TDP government has so far mobilised Rs 16,810 crore through financial agencies and bank loans. While Hudco sanctioned Rs 1,275 crore in December last year for infrastructure works such as roads, a World Bank loan for Rs 3,324 crore is expected in a month or two, which will be used for major arterial roads, flood mitigation and to upgrade village infrastructure.

“Commercial banks are providing financial assistance of Rs 2,026 crore for the housing projects,” APCRDA commissioner Cherukuri Sridhar said.