The World Bank is set to release ₹1,700 crore as the second tranche for Amaravati capital’s Phase 1 development works by the end of 2025. This amount is part of the $800 million loan approved for Amaravati’s infrastructure development.
The Asian Development Bank (ADB) has also committed $800 million, bringing the total external funding to $1.6 billion. The first tranche of $207 million was released in March 2025, of which around 50% has already been utilized for construction and infrastructure projects.
As per funding guidelines, the state government can request the second tranche once 75% of the initial funds are used. Both World Bank and ADB teams are monitoring progress closely through monthly inspections of project quality and execution.
In its latest report, the World Bank expressed satisfaction with the progress made, especially the start of large-scale construction works and the establishment of environmental and social management units.
The Department of Economic Affairs acts as the borrower, while the Capital Region Development Authority (CRDA) serves as the implementing agency. Under Chandrababu Naidu’s leadership, the government has been conducting regular CRDA meetings to track progress and push for a world-class capital city that reflects the aspirations of the people of Andhra Pradesh.
A well-developed Amaravati, officials say, will position Andhra Pradesh as an attractive investment destination for major global players and industry leaders.
