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NRIPage | Articles | Centre Releases ₹4,285 Crore for Amaravati Capital Project After World Bank Funding | Get AI & Robotics News. Innovating the Future of Technology around the world - NRI Page
Amaravati, Andhra Pradesh — The Central Government has disbursed over ₹4,200 crore to Andhra Pradesh for the development of its capital, Amaravati. This follows the release of USD 205 million (approx. ₹1,705 crore) by the World Bank under a major international funding initiative aimed at completing the first phase of the state’s capital development project. A senior government official confirmed that the ₹4,285 crore, transferred on April 1, is part of a comprehensive ₹15,000 crore financial package. The package includes contributions from the World Bank, the Asian Development Bank (ADB), and the Government of India. Each multilateral institution has committed USD 800 million, totaling USD 1.6 billion (approximately ₹13,600 crore). The Centre will provide the remaining ₹1,400 crore to round out the funds needed for Phase 1 of the Amaravati Capital Development Project.
Project Financing Structure and Implementation
According to internal documents from the World Bank, the capital development project officially began on January 22, 2025, with the first disbursement made in March. The funds are structured to be released in phases based on the project’s implementation milestones. “Out of this ₹15,000 crore total, we’ve received ₹4,285 crore from the Centre so far. This includes 25% of the Centre’s share, which has been given as a Mobilisation Advance,” a senior official stated. Additional tranches will be issued depending on the state's ability to provide utilisation certificates and evidence of physical progress on the ground. The second installment of funds from the Centre is expected no earlier than six months from now, as construction has only recently commenced.
Concerns about environmental degradation and potential impact on local livelihoods have been addressed through a joint monitoring mechanism by the World Bank and ADB. Both institutions have established independent grievance redressal mechanisms, which allow citizens and stakeholders to raise concerns. A six-member team from the World Bank and ADB recently visited Amaravati to review early-stage project activity. The visiting officials reportedly expressed satisfaction with the initial progress and compliance with environmental and social safeguards.
PM Modi to Relaunch Construction in April
Chief Secretary K. Vijayanand announced that Prime Minister Narendra Modi is expected to formally relaunch construction activities in Amaravati in April 2025. This symbolic move is seen as a renewed push to bring the stalled capital project back on track, with long-term development works estimated to cost ₹1 lakh crore over the next few years. The International Bank for Reconstruction and Development (IBRD), part of the World Bank Group, is providing its USD 800 million share through a structured loan agreement. The Department of Economic Affairs (DEA) is listed as the official borrower on behalf of India, while the Andhra Pradesh Capital Regional Development Authority (APCRDA) is responsible for the execution and ground-level project management.
