The Andhra Pradesh government has kick-started its ambitious plan to develop Amaravati, the state’s capital, with a substantial financial boost from the World Bank and Asian Development Bank (ADB). The state government has issued comprehensive guidelines to the Capital Region Development Authority (CRDA) regarding the strategic allocation of the funds granted by the two international financial institutions.
The Amaravati Inclusive and Sustainable Capital City Development Program, proposed by the Andhra Pradesh CRDA, has received a green light from both the World Bank and ADB, with each pledging $800 million. This program, operating under the Program for Results (PforR) and Result-Based Lending (RBL) frameworks, will receive a total of $1.6 billion in support. The remainder of the funding will be provided by the state government, with additional assistance from the Union government.
The state has appointed the CRDA as the primary nodal agency to coordinate these international investments and has laid out its top priorities for infrastructure development in Amaravati. The CRDA Commissioner, Katamaneni Bhaskar, has been nominated as Chairperson of the newly formed Amaravati Development Corporation, with D. Lakshmi Parthasarathy Bhaskar and joint finance department advisor D. Surendra named as members of a high-level committee to oversee agreements with the World Bank and ADB.
According to the state government, the vision is to create a sustainable and inclusive capital city with world-class infrastructure, supporting a vibrant economy and high quality of life for residents. Amaravati’s development plan includes a focus on environmental sustainability, leveraging regional heritage, and establishing the city as an administrative and economic center that generates employment and fosters a resilient urban ecosystem.
The government has outlined specific development projects as top priorities, including the construction of trunk roads, utility ducts for essential services, and a robust stormwater drainage and flood mitigation system. Additional projects will address 24×7 clean water supply, advanced sewerage infrastructure including sewage treatment plants (STPs), green public spaces, and high-quality roads and utilities. Public buildings will be constructed in adherence to green standards, further aligning the city with eco-friendly practices.
Anantha Ramu, Special Chief Secretary of Municipal Administration and Urban Development, stated, ‘The APCRDA Commissioner has been instructed to take immediate action to secure and manage financial assistance from the World Bank and ADB for the structured development of Amaravati.’
The state government has also empowered the CRDA Commissioner to drive institutional strengthening, build capacity, and explore innovative financing options to ensure timely completion of the projects. With these comprehensive measures in place, Andhra Pradesh is poised to shape Amaravati as a model city, with resilience, inclusivity, and sustainable development at its core.
