The World Bank has approved a US $800 million loan for the development of Andhra Pradesh's capital city, Amaravati, stipulating that the loan must be repaid over 29 years with a six-year grace period.
Following the announcement in the Union Budget in July, discussions were held regarding repayment terms, and a World Bank team visited Amaravati for consultations.
After extensive deliberations with the Capital Region Development Authority (CRDA), the World Bank finalized the loan and outlined its terms and repayment schedule in a letter to the CRDA, providing clear guidelines for implementation.
Under the Amaravati Integrated Urban Development Program, the loan will be disbursed in six phases, contingent upon the timely completion of each stage.
Regular monitoring and evaluation will determine the release of subsequent installments based on satisfactory progress.
The loan is designed to support institutional development, infrastructure expansion, and job creation in Amaravati.
The World Bank emphasized the critical role of private sector participation to ensure timely economic growth and efficient resource utilization.
The CRDA indicated that the funds would be allocated to improving infrastructure, establishing institutions, and fostering employment opportunities.
The World Bank directors approved the CRDA's proposals, underlining the need to address grievances and resolve implementation challenges promptly.
During discussions, the Andhra Pradesh government highlighted that the successful execution of the Amaravati project would attract private investments, encourage corporate establishments, and significantly boost the state's tax revenues.
With the loan approval and repayment terms clarified, Amaravati is poised to move forward as a modern, integrated urban center, guided by a structured and sustainable development framework.