Amaravati construction: Andhra govt to approach World Bank, AIIB again, to also seek central funds

By: |
Published: August 1, 2019 5:40:29 PM

The Andhra Pradesh government will soon reopen talks with officials of the World Bank and the Asian Infrastructure Investment Bank, seeking support for construction of the state's capital city, Amaravati, and a few other infrastructure projects.

CM YS Jagan Mohan Reddy has already identified a core team for preparing a detailed project report and funds required for the construction of the capital.

The Andhra Pradesh government will soon reopen talks with officials of the World Bank and the Asian Infrastructure Investment Bank, seeking support for construction of the state’s capital city, Amaravati, and a few other infrastructure projects. Both the multilateral funding agencies, which had pledged a combined support of $500 million, had pulled out of the plan to support the Amaravati Sustainable Infrastructure and Institutional Development Project.

Officials, on condition of anonymity, said talks will be initiated with the World Bank officials by next week and also with the Centre as well, without specifying the quantum of funds to be asked for.

CM YS Jagan Mohan Reddy has already identified a core team for preparing a detailed project report and funds required for the construction of the capital. The move comes in the wake of acute financial crisis and mounting expenditure bills due to introduction of new schemes for various sections of the society by the state government.

“After seeing the sorrowful state of those farmers who had given up their land as part of land pooling system for capital construction, the CM decided to reopen talks with the bank as the local employment pertaining to construction activities has come to a standstill. We’ll soon initiate talks with the apex bank for financing big projects including capital construction,’’ the official said.

Incidentally, the World Bank, which has had a long and productive partnership with Andhra Pradesh, is also open to support any project in Andhra Pradesh if there is a request from the Centre. “As the new government sets its development priorities, we stand ready to provide whatever support the state and the government of India might request,’’ a recent statement from the World Bank said.

“The World Bank continues to support the state of Andhra Pradesh with over $1 billion programme that covers the health, agriculture, energy and disaster management sectors. This includes a new $328-million support to the state’s health sector signed with the government of Andhra Pradesh on June 27, 2019,’’ it said.

The AP Capital Regional Development Authority commissioner P Lakshmi Narasimham had earlier said the state government would take a decision on the matter after consulting the Union government.

The bank decided to drop the financing plan after receiving complaints from the Working Group on International Financial Institutions (WGonIFI), a collective of financial experts and civil societies, communities affected by the Amaravati Capital City Project and few other NGOs who had demanded immediate scrapping of the unconstitutional Land Pooling Act, which violates the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, passed by the Centre.

NGOs also demanded a judicial inquiry against violations during land pooling and proper compensation to affected parties.

Meanwhile, the state government, in coordination with the Ministry of External Affairs, is conducting a conference on August 9 in Vijayawada for attracting fresh investments. The event will be attended by ambassadors, diplomats, and consul general from 30-40 countries.

gThe summit to commence on August 9 will have two phases. In the first phase, chief minister YS Jagan Mohan Reddy will meet ambassadors and consul general of the respective countries and in the second phase, he would hold individual meetings with the representatives of different countries,” said a release from the state government.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Indian Railways passengers will love this! Soon, stream free high-quality movies, videos on trains, stations
2Delhi-Meerut RRTS: Good news! 17-km long Sahibabad-Duhai stretch to be operational by March 2023; details
3Why Indian Railways Mahalaxmi Express was stuck in water for several hours