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World Bank drops its $300 mn promise for Amaravati project

On Thursday, the World Bank in its website said the project is ‘dropped’, without elaborating on the reasons for its decision.

ET Bureau|
Updated: Jul 19, 2019, 10.26 AM IST
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Amaravati is the brainchild of N. Chandrababu Naidu, who suffered crushing defeat in the recent elections.
AMARAVATI: In a move that fizzles out the ambitious Greenfield capital city project at Amaravati conceptualised by N Chandrababu Naidu, former chief minister of Andhra Pradesh, the World Bank has decided to pull out of the $300 million (Rs 2,065 crore) participation.

The World Bank was evaluating the request to extend $300 million assistance to the Greenfield capital city project of Andhra Pradesh sought by Naidu under Amaravati Sustainable Infrastructure and Institutional Development Project. The global lending agency, however, kept the proposal in suspension following complaints it received from farmers, who were opposing to participate in the land pooling model proposed by Naidu, and some non-governmental organisations that opposed the project.

Keeping in view the delay from the World Bank in extending the financial assistance, the Telugu Desam Party government headed by Naidu had last year raised Rs 2,000 crore through issue of bonds and commenced the works.

On Thursday, the World Bank in its website said the project is ‘dropped’, without elaborating on the reasons for its decision.

Ever since Naidu lost in the 2019 concurrent polls to the Lok Sabha and Assembly in Andhra Pradesh to YSR Congress Party president YS Jaganmohan Reddy, who strongly opposed to the scale and location of the capital city, apprehensions were expressed on the progress of the capital city.

Though there was no official statement from the Jaganmohan Reddy government, the civil construction works at Amaravati came to a standstill even as the government ordered an inquiry into various alleged irregularities involved in awarding capital city construction works.

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After World Bank, China-led development bank pulls out of Amaravati project

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