Andhra Pradesh CM Jagan to take a call on $500 mn World Bank loan for Amaravati

Andhra CM Jagan Mohan Reddy

VIJAYAWADA: One of the first and major decisions awaiting the new government’s nod with respect to Amaravati is regarding the long-pending World Bank loan. While the YSRC government is yet to announce its developmental strategy for the capital, the Andhra Pradesh Capital Region Development Authority (APCRDA), sources said, would appraise Chief Minister YS Jagan Mohan Reddy of the matter as the process of borrowing $500 million reached its last leg.

“The process of lending $500 million reached the final stage, but there are a few procedural correspondence pending from the State government’s side. So, we will inform the CM about it, so that an appropriate decision can be taken for it to be processed,” a senior official told TNIE.

Once the State government provides the necessary documentation, the file would be sent to the Department of Economic Affairs (under the Union Ministry of Finance) for final clearance. Even though the application seeking the loan of which World Bank will lend $300 million and the remaining $200 million will be co-financed by Asian Infrastructure Investment Bank (AIIB) was submitted in 2016, it hasn’t been processed after a few farmers from Amaravati complained to the Inspection Panel of the international lending agency of alleged irregularities and coercion in land procurement.

The panel also inspected the villages, and interacted with APCRDA and farmers to decide if a probe would be necessary into the allegations. It deferred taking a decision on probe in 2017 and once again in July last year. However, before the elections, the State government received a positive response from the bank.

A review meeting on APCRDA is also expected to be conducted by the CM next week, during which he is likely to outline his government’s plans for Amaravati. For the record, Municipal Administration and Urban Development Minister Botsa Satyanarayana had already clarified that the State government would go ahead with the capital development. But, he did not go into specifics.

[“source=newindianexpress”]