It's now official. The AP Government will knock the doors of the World Bank for a loan of Rs 6600 crore to construct Amaravati, the new capital. With all hopes of Central assistance fading, the State Government is left with no option but to knock the doors of the World Bank. Thankfully, the Centre has already given a NO Objection letter to the State Government to allow it to approach the World Bank. Officials say that the World Bank has accepted the AP Government's request in principle.
Chandrababu is also trying to mop up monies from other sources too. For instance, he had already got HUDCO agree to partner the Capital construction. An MoU was signed recently during the Partnership summit held in January 2016 at Visakhapatnam. HUDCO would also advance Rs 7500 crore. The AP government has asked the Centre for Rs 4,000 crore per year for the construction of Amaravati. But the Centre has so far sanctioned only Rs 1,850 crore. Of this amount, the State has already spent Rs 850 crore.