Delhi: The central government has reaffirmed its commitment to supporting the construction of Amaravati, the capital of Andhra Pradesh. The Union Finance Ministry has clarified that loans obtained from the World Bank and the Asian Development Bank (ADB) for Amaravati’s development will not be counted under the state’s debt limit.
Union Minister of State for Finance Pankaj Chaudhary provided a written response in the Lok Sabha, addressing a query from a YSRCP MP. He stated that foreign loans for Amaravati’s development are exempt from Andhra Pradesh’s borrowing restrictions. Additionally, the Centre has already granted ₹2,500 crore under special assistance and emergency infrastructure funds for the capital region.
The Centre facilitated loan approvals of ₹6,700 crore each from the World Bank and ADB for Amaravati’s integrated urban and capital city development programs. A special assistance grant of up to ₹1,500 crore, covering 10% of the project cost, will also be provided as counterpart funding.
The utilization of funds will be monitored under specific guidelines, ensuring the smooth execution of Amaravati’s development as the capital of Andhra Pradesh.
