The World Bank’s Board of Executive Directors has recently sanctioned a loan of USD 800 million for the Amaravati Integrated Urban Development Program. This initiative is aimed at the development of Amaravati, the new capital city of Andhra Pradesh. The approval came during a meeting held in Washington, USA.
According to a press release from the World Bank, the primary goal of this program is to transform Amaravati into a well-organized and climate-resilient urban center that stimulates job creation and enhances the quality of life for its current and future residents, particularly those who are most vulnerable.
The Government of India had requested this significant sum to help establish Amaravati as an economic hub and the administrative capital of Andhra Pradesh. The loan is structured with a maturity period of 29 years, featuring a six-year grace period, and it is set to be disbursed in Japanese Yen.
Auguste Tano Kouame, the World Bank’s Country Director for India, emphasized that the institution will leverage global expertise to assist in designing urban infrastructure and governance that can provide economic opportunities for various demographics, including women, youth, and disadvantaged groups.
With India’s urban population projected to increase to 950 million by 2050, there is a strong emphasis on developing sustainable and livable cities. Kouame noted that Amaravati presents a promising opportunity to serve as a model for this urban transformation effort.
