The Central Government has released over Rs 4,200 crore to Andhra Pradesh for the Amaravati Capital Development project after it (centre) received the first disbursement of USD 205 million from the World Bank, according to report.
The World Bank and Asian Development Bank (ADB) committed to funding USD 1600 Million (Rs 13,600 crore), USD 800 Million each, for Amaravati capital city phase-I development, while the Centre will be contributing the remaining Rs 1,400 crore out of the Rs 15,000 crore committed by the Central Government for phase-I of the development.
Following the World Bank documents, the project became effective on January 22 this year, and the first disbursement of USD 205 million for program advances was made last month.
Out of the total Rs 15,000 crore, the funding is shared between the World Bank, the Asian Development Bank (ADB), and the Centre. The ADB may have contributed a similar amount of USD 205 million.
The Centre has also released its matching amount of approximately Rs 800 crore. The official further mentioned that the Centre had released a total of Rs 4,285 crore on April 1. The Centre has agreed to provide 25% of the total committed amount as a 'Mobilisation Advance,' and the released amount falls under this category.
The next instalment of the committed amount will be released after the state government shows some progress and submits bills or utilisation certificates.
The International Bank for Reconstruction and Development (IBRD), part of the World Bank, provides loans and guarantees, among other things, to middle-income and creditworthy low-income countries and will fund USD 800 in addition to ADB. Following the WB document, the Department of Economic Affairs at the Centre is the borrower, while the Andhra Pradesh Capital Regional Development Authority is the implementing agency.
