Rs 15,000 Crore Loan from World Bank and ADB: AP Govt Issues Orders for Using Funds

The Andhra Pradesh government has officially issued orders for the use of funds provided by the World Bank and the Asian Development Bank (ADB) to support the capital development of Amaravati. On Sunday, the state confirmed that both international financial institutions will jointly extend a loan of Rs. 15,000 crore (approximately $800 million each) for the project.

Urban Development Special Chief Secretary Anantha Ramu issued Government Order GOMs-118 on Sunday, outlining the terms for utilizing these funds. The capital region development authority (CRDA) commissioner, Katamneni Bhaskar, is expected to sign the loan agreements with the World Bank and ADB in New Delhi on Monday.

The funds will be used to build infrastructure, create green structures, and generate employment opportunities in Amaravati. The CRDA has been designated to oversee the development work, which will include the construction of essential infrastructure such as main roads, ducts, drainage systems, floodwater canals, water reservoirs, and safe drinking water facilities.

The state’s plans for the sustainable development of Amaravati, as submitted by the CRDA, have received approval from the Union Finance Ministry. Both the World Bank and ADB have endorsed these plans and have committed to providing a loan of $800 million each for the project.

The remaining funds required for Amaravati’s development will be raised by the state government, with support from the central government.

To ensure effective management of these funds, the state has ordered the creation of a special account to receive the loan assistance in phases, based on the progress of development and construction. The CRDA commissioner has been authorized to oversee the financial assistance and ensure the proper implementation of the projects under the supervision of the CRDA.