AP Government urged World Bank to grant a loan of Rs 6,600 crore towards construction cost of the new capital Amaravati. The World Bank had in principle agreed to offer necessary financial help to the state. After the hopes of State Government got ruined with no allocation in the recent Union Budget, Chandrababu Naidu decided to seek loans from National and International Financial Agencies.
A request was placed before Centre for obtaining loans from World Bank. In response, Union Government issued a No Objection letter.At the Partnership Summit held in Visakha recently, Even HUDCO agreed to partner with AP Government to build the capital and an MoU was signed by both the parties.
HUDCO would provide a loan of Rs 7,500 crore.In addition, AP Government sought Centre to grant Rs 4,000 crore per year for AP Capital construction. But, Centre has sanctioned only Rs 1,850 crore so far.