World Bank approves a loan of ₹15,000 crore for the development of Amaravati.
Banking & Finance
The World Bank (WB), along with the Asian Development Bank (ADB), has agreed in principle to provide a loan of ₹15,000 crore to Andhra Pradesh (AP) to help develop Amaravati as its capital city.
- A confirmation letter for the loan has been sent to India’s Ministry of Finance (MoF). Final discussions are set for November 8, 2024, and the agreement is expected to be signed by November 15, 2024.
- After the agreement, the Andhra Pradesh Capital Region Development Authority (APCRDA) will receive an initial payment of ₹3,750 crore in November 2024.
Main Points:- (i) The total cost of the project is estimated at ₹49,000 crore, with ₹15,000 crore coming as a soft loan from the World Bank (WB).
(ii) The loan includes a 15-year moratorium on repayment, with the costs shared between the central and state governments in a 90:10 ratio.
(iii) The funds will be used for infrastructure development, including residential and commercial areas on land pooled from farmers, as well as the construction of important government buildings like the state assembly and high court.
About Asian Development Bank (ADB)
President: Masatsugu Asakawa
Headquarters: Mandaluyong, Philippines
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