Central Government Allocates ₹4,200 Crore to Andhra Pradesh for Amaravati Capital Project

The Central Government has released over ₹4,200 crore to Andhra Pradesh for the Amaravati Capital Development project. This follows the receipt of USD 205 million from the World Bank.

The World Bank and Asian Development Bank (ADB) have committed a total of USD 1,600 million for the project's phase-I development, with each contributing USD 800 million (₹13,600 crore). The central government will contribute the remaining ₹1,400 crore of the ₹15,000 crore committed for phase-I.

The project became effective on January 22nd, and the first disbursement from the World Bank occurred last month. The ADB may have also provided a similar amount. The Centre released its matching amount of approximately ₹800 crore, bringing the total received from the Centre to ₹4,285 crore as of April 1st.

The released amount represents 25% of the total committed amount, designated as "Mobilisation Advance." Further installments will be released upon demonstration of progress and submission of utilization certificates by the state government. Prime Minister Narendra Modi is scheduled to relaunch construction in April, which will entail the resumption of works worth about ₹1 lakh crore.

A joint delegation from the World Bank and ADB visited Amaravati last month and expressed satisfaction after an inquiry regarding environmental and livelihood concerns.