Centre Boosts Amaravati Capital Project with Over Rs 4,200 Crore Injection
The Central Government has disbursed more than Rs 4,200 crore to Andhra Pradesh to support the Amaravati Capital Development project, following the receipt of an initial USD 205 million from the World Bank, a senior official confirmed. This funding marks a significant step in the phase-I development of the state’s ambitious capital city project.
The World Bank and the Asian Development Bank (ADB) have collectively pledged USD 1,600 million (Rs 13,600 crore) USD 800 million each to finance the first phase of Amaravati’s development. The Centre is contributing the remaining Rs 1,400 crore of the total Rs 15,000 crore committed for this stage. According to World Bank records, the project was officially activated on January 22 this year, with the first USD 205 million advance disbursed last month.
The official explained the funding breakdown: “The Rs 15,000 crore total is split between the World Bank, ADB, and the Centre. The Centre has provided its share, approximately Rs 800 crore, alongside the international contributions. On April 1, we received Rs 4,285 crore from the Centre.” This amount falls under a 25% “Mobilisation Advance” agreed upon by the Central Government, the official noted.
Further funds will depend on the state’s progress, with the next installment expected after Andhra Pradesh submits utilisation certificates or demonstrates tangible advancements. “That will take at least six months,” the official said. “Construction has only just begun, and it will gain momentum in the next two to three months.”
Addressing concerns raised with the World Bank about environmental and livelihood impacts, the official highlighted that both the World Bank and ADB have robust, independent grievance redressal systems. A joint delegation from the two institutions, consisting of six members three from each visited Amaravati last month and, after an investigation, expressed satisfaction with the project’s management.
Andhra Pradesh Chief Secretary K. Vijayanand recently announced that Prime Minister Narendra Modi will relaunch the greenfield capital city’s construction in April, kickstarting works valued at approximately Rs 1 lakh crore. The International Bank for Reconstruction and Development (IBRD), a World Bank entity that offers loans and guarantees to middle-income and creditworthy low-income nations, is providing USD 800 million for the project. Per World Bank documentation, the Department of Economic Affairs at the Centre is the borrower, while the Andhra Pradesh Capital Regional Development Authority serves as the implementing agency.