Centre Releases Funds 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 first disbursement of $205 million from the World Bank, according to a senior official.
The World Bank and Asian Development Bank (ADB) have committed to funding $1600 million (₹13,600 crore) for the Amaravati capital city phase-I development, with each contributing $800 million. The Centre will contribute the remaining ₹1,400 crore out of its total commitment of ₹15,000 crore for phase-I.
According to World Bank documents, the project became effective on January 22nd of this year, with the initial disbursement of $205 million occurring last month.
An official stated that the Centre has also released its matching amount of around ₹800 crore, bringing the total received from the Centre to ₹4,285 crore as of April 1st. This amount represents a 25% "Mobilisation Advance" of the total committed funds.
Future installments are contingent upon the Andhra Pradesh State Government demonstrating progress and submitting the necessary bills or utilization certificates. The official anticipates that it will take at least six months for the second tranche of funds to be released, as works are still in their early stages.
Concerns raised regarding environmental and livelihood issues have been addressed through the World Bank and ADB's independent grievance redressal mechanisms. A joint delegation from both banks visited Amaravati last month and expressed satisfaction after conducting an inquiry.
A.P. chief secretary K. Vijayanand stated that Prime Minister Narendra Modi is expected to relaunch the Amaravati greenfield capital city construction in April, which will involve resuming works worth approximately ₹1 lakh crore.
The International Bank for Reconstruction and Development (IBRD), a World Bank entity, will be providing $800 million in funding, alongside the ADB.
The Department of Economic Affairs at the Centre is the borrower, with the Andhra Pradesh Capital Regional Development Authority serving as the implementing agency, as per World Bank documentation.
