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China-backed bank drops funding for Amaravati Capital City project

Former CM Chandrababu Naidu had dreamed of constructing a world-class capital in Amaravati on the south bank of river Krishna, over 217 sq kms. The TDP regime had procured 34,000 acres of fertile land from farmers under a land-pooling scheme.

By: Express Web Desk | New Delhi | Updated: July 23, 2019 4:22:38 pm
amaravati project. amaravati project funding, amaravati funding, world bank amaravati funding, chinese bank amaravati, andhra pradesh capital city, naidu amaravati Amaravati Capital City Project. (Visual representation)

The Beijing-backed Asian Infrastructure Investment Bank Tuesday pulled out of financing Amaravati capital city in Andhra Pradesh, days after the World Bank dropped plans to support the project.

The Amaravati city project is the brainchild of former Chief Minister Chandrababu Naidu, who lost to YSR Congress in the Assembly Elections this year. Naidu had dreamed of constructing a world-class capital in Amaravati on the south bank of river Krishna, over 217 sq kms. The TDP regime had procured 34,000 acres of fertile land from farmers under a land-pooling scheme.

“AIIB is no longer considering the Amaravati Sustainable Infrastructure and Institutional Development Project for funding,” spokeswoman Laurel Ostfield told Reuters in an emailed statement.

Explained | Will work stop at Amaravati after World Bank withdraws funding?

On Friday, the World Bank decided against funding $300 million for the project. Several NGOs led by Capital Region Farmers Federation, and Narmada Bachao Andolan, Working Group on International Financial Institutions (WGonIFIs), Human Rights Forum, Andhra Pradesh, National Alliance of People’s Movements, and Centre for Financial Accountability have been opposing the previous Telugu Desam Party (TDP) regime’s plans to build the capital by acquiring land from farmers, and protested against development very near to the Krishna riverbank.

The YSRCP government has for the time being halted taking up new constructions in the capital city.

Except for those which are already under progress like apartments and bungalows for government staff and All India Service officers, contracts awarded after April 1, 2019, for new projects have been cancelled by Chief Minister Y S Jagan Mohan Reddy who has ordered an inquiry into the contracts citing irregularities and corruption.

(With inputs from Reuters)

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