Ever since the government changed in Andhra Pradesh, the works for Amaravati Capital City have been put back on track and are progressing at a rapid pace.
Chief Minister Chandrababu Naidu’s efforts to seek the World Bank’s support through the central government have been successful. The World Bank has agreed, in principle, to provide a loan of Rs. 15,000 crores. A letter regarding this has been sent to the central government, and the process is expected to be completed in a month and a half.
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The World Bank and the Asian Development Bank (ADB) are jointly offering this loan. The good news is that the Capital Region Development Authority (CRDA) will receive the full Rs. 15,000 crores within this financial year.
Meanwhile, the approval of the loan by the World Bank and ADB in such a short span of time is a record in itself. Usually, it takes more than a year for these banks to approve loans as they consider various factors before lending money. However, Amaravati’s loan is getting approved within just three and a half months.
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The central government will bear 90% of the loan, while the state is responsible for only 10%. The interest rate is expected to be less than 4%. It is heard that the central government plans to cover the state’s 10% share through other funding allocated to Andhra Pradesh.
According to CRDA’s calculations, approximately Rs. 49,000 crores are needed for all aspects of the capital city’s construction. With Rs. 15,000 crores now coming in, plans are being made accordingly.
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Tomorrow, representatives from the World Bank, Union Finance Ministry, and CRDA will meet in Delhi. Their final meeting is scheduled for November 8, and the remaining formalities will be completed by November 15.
Afterwards, 25% of the total amount, i.e., Rs. 3,750 crores, is expected to be given as an advance. Thus, CRDA is planning to begin work by the end of November or early December. Plans are also being made to call for tenders.
As the works will start soon, real estate will bloom in Amaravati, resulting in the skyrocketing of its prices. What has been in ruins for the past five years will now see its remarkable development.
