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The Central Government has disbursed over INR 4,200 crore to Andhra Pradesh for the much-delayed Amaravati capital city project, following the release of USD 205 million by the World Bank. This forms part of the larger funding support of USD 1,600 million jointly committed by the World Bank and the Asian Development Bank (ADB). With the Centre contributing an additional INR 1,400 crore, total funding for the first phase now stands at around INR 15,000 crore. The Amaravati capital project, long mired in political and legal uncertainty, appears set for a revival, with a formal relaunch of construction expected soon.
In a significant move aimed at reviving the stalled Amaravati capital development project, the Central Government has released over INR 4,200 crore to Andhra Pradesh. This fund disbursement follows the World Bank's recent release of USD 205 million, marking a major financial push towards the first phase of the long-pending greenfield capital city project. Advertisement
The funding is part of a broader financial structure involving commitments from both the World Bank and the Asian Development Bank (ADB), each pledging USD 800 million. Together, the multilateral lenders have promised USD 1,600 million-roughly INR 13,600 crore-for the first phase of the development. Adding to this, the Indian government has agreed to provide INR 1,400 crore from its coffers, raising the total to around INR 15,000 crore.
Officials indicated that the project officially became effective earlier this year, with the first instalment of USD 205 million from the World Bank reaching the state government recently. The Centre's contribution has been categorised as a "Mobilisation Advance," constituting 25% of its committed share. Future instalments will be performance-linked, released against progress milestones and verified utilisation certificates submitted by the state.
The Amaravati project, conceptualised during the bifurcation of Andhra Pradesh, has faced numerous hurdles since its inception, ranging from political shifts and environmental concerns to citizen protests and stalled contracts. However, the renewed financial backing appears to signal a decisive shift in momentum.
Notably, both the World Bank and ADB have institutionalised grievance redressal mechanisms to address environmental and livelihood concerns raised in the past. Representatives from both international lenders visited Amaravati recently and, after a field inquiry, reportedly expressed satisfaction with the proposed course of action.
Adding weight to this revival effort, the Andhra Pradesh Chief Secretary announced earlier this week that Honorable Prime Minister Narendra Modi is expected to formally relaunch the capital city's construction in the coming days. The renewed push comes as the state aims to finally kickstart the core infrastructure work that had been put on hold for years.
The Amaravati capital project originally envisioned a futuristic, people-centric city along the banks of the Krishna River. The plan includes administrative complexes, residential zones, and public amenities, supported by sustainable infrastructure and green technologies. With fresh funding in place, authorities are hopeful that this vision can finally begin to take shape.
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