India withdrew request for financing Amaravati project: World Bank

A participant stands near a logo of World Bank at the International Monetary Fund - World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 12, 2018. REUTERS/Johannes P. Christo/File Photo
The World Bank, which has dropped its $300 million commitment for the new Andhra Pradesh capital last week, clarified on Sunday that the Indian government withdrew its request to finance the project.

The World Bank, in a statement on its website, said the India on July 15 withdrew its request to the World Bank for financing the proposed Amaravati Sustainable Infrastructure and Institutional Development Project.

"The World Bank's Board of Executive Directors has been informed that the proposed project is no longer under preparation following the government's decision," said the statement.

It, however, said that it continues to support Andhra Pradesh with over $1 billion programme that covers the health, agriculture, energy and disaster management sectors. This includes the new $328 million support to the state's health sector signed with the state government on June 27.

'Dropped'

The World Bank website Thursday showed the status of Amaravati Sustainable Infrastructure and Institutional Development Project as 'dropped'.

However, Andhra Pradesh Capital Region Development Authority (APCRDA), which is the implementing agency for the project, said it had not received any official communication from the World Bank about dropping the project.

The total project cost was $715 million and the state government in 2016 had sought the entire funding from the World Bank. However, it committed $300 million.

The development came one-and-half month after YSR Congress Party (YSRCP) came to power in the state.

Amaravati is the brainchild of N. Chandrababu Naidu, who suffered crushing defeat in the recent elections.

After forming first government in residuary state of Andhra Pradesh following bifurcation of united Andhra Pradesh in 2014, Naidu had announced developing Amaravati near Vijayawada as the new state capital. The Singapore government had prepared the master plan for the same.

Under Naidu's ambitious plans the capital city is to come up in areas of 217 sq km. Under the first phase from 2015 to 2025, the state capital was to be built at a cost of nearly Rs 50,000 crore while the subsequent two phases were estimated to cost over Rs 1 lakh crore.
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