Current Affairs

Andhra Pradesh forms committee to look into Amaravati and other plans

December 2019
In a bid to review and study developmental plans in Andhra Pradesh as well as the upcoming capital of Amaravati, the state government has reportedly set up a committee consisting of five members, who are urban planning experts. They have been charged with the responsibility to analyse the project plans that have been implemented up until now and recommend an extensive strategy to ensure the state is developing and growing on all fronts. The newly formed committee has been directed to submit its report in mid-December. 

The move comes in the backdrop of the World Bank and Asian Infrastructure Investment Bank’s (AIIB) decision to withhold funding and withdrawing their support for the Amaravati project. Reportedly, the organisations were going to previously provide funding of $500 million in total, while the Andhra Pradesh Government was going to contribute $200 million. 

At a recent AIIB event in Mumbai, Laurel Ostfield, Director-General & Company Spokesperson, AIIB, shared with CW, “We were co-financing this project with the World Bank but are no longer funding it. The decision has been made by our investment committee, and the deliberations remain highly confidential.”

According to a statement released by the World Bank, on July 15, the Government of India withdrew its request to the bank for financing the proposed Amaravati Sustainable Infrastructure and Institutional Development Project. The World Bank’s Board of Executive Directors has been informed that the proposed project is no longer under preparation following the government’s decision. However, the World Bank continues to support the state with an over $1 billion programme that covers the health, agriculture, energy and disaster management sectors. 

Going by reports, it remains unclear if the formation of the committee is solely related to determining the scope of the Amaravati project. Further clarity is expected only after the submission of the requested report. 

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