VIJAYAWADA: In a significant push to revive the construction of Amaravati, the Centre has released Rs 4,285 crore for the capital city’s development. This includes Rs 750 crore as the Centre’s counterpart funding, with the rest from international funding partners, the World Bank and Asian Development Bank (ADB).
The funds were sanctioned after the Andhra Pradesh Capital Region Development Authority (APCRDA) sought an advance to kickstart long-pending development works in the greenfield capital.
The release of funds gained significance in view of Prime Minister Narendra Modi’s expected visit to Amaravati in the third week of April to relaunch the construction of the capital city, as recently announced by Chief Secretary K. Vijayanand.
The relaunch is anticipated to trigger infrastructure development worth nearly Rs 1 lakh crore, reviving the original vision of a world-class capital for the state.
Speaking to TNIE, APCRDA commissioner K Kanna Babu, the World Bank and ADB have jointly committed USD 1,600 million (approximately Rs 13,600 crore) for Phase-I of Amaravati’s construction, USD 800 million each, while the Centre will chip in Rs 1,500 crore to complete the Rs 15,000 crore first-phase package.
The project officially came into effect on January 22, and a program advance of USD 205 million was disbursed last month. The recent Rs 4,285 crore allocation to the state was released under the ‘Advance’ head, with 25 % of the total funding offered upfront to enable the restart of capital works.
Visible change on ground within months: CRDA chief
Kanna Babu said, “The Centre’s timely release has infused fresh momentum. With this support, we are gearing up to bring visible change on the ground within months.”
According to sources, the next tranche of funds will be released only after the state submits utilisation certificates and demonstrates progress. “That will take time. The works have just resumed. In two to three months, they will gather momentum, and by six months, we expect to be eligible for the next instalment,” an APCRDA official noted.
Concerns had earlier been raised with the World Bank regarding environmental and livelihood issues linked to the Amaravati project. However, a joint delegation of three members each from the World Bank and ADB visited Amaravati in March to assess these concerns.
Following their inquiry, they expressed satisfaction with the redressal mechanisms and the measures being adopted by the implementing agencies.
The International Bank for Reconstruction and Development (IBRD), a lending arm of the World Bank, is also funding part of the Amaravati project. According to World Bank documents, the Department of Economic Affairs, GoI, is the designated borrower, while APCRDA is the implementing agency.