The ruling Telugu Desam Party government in the state which is flying high on the successful mobilisation of Rs 2,000 crore through Amaravati Bonds for the new capital city is said to have received shocking message from the World Bank. The bank, which was approached by the State government for loan for the new capital city, had been waiting since 2017.
The State government through the AP Capital Region Development Authority had approached the World Bank in 2017 for a whopping externally aided loan of Rs 4,700 crore of which the Central government will pay Rs 1,394 crore and the State will share Rs 3,306 crore. The State government planned to invest the loan amount for the infrastructure in the new capital, Amaravati.
However, the State government received a shocker with some farmers from the capital villages sending letters to the World Bank against violation of rules in the Land Pooling System adopted by the State government for the capital city. A team of World Bank officials have inspected the area in June 2017 and found that some farmers are opposing the government’s initiative and there are cases against the land pooling system and Amaravati in the National Green Tribunal.
Taking all these into consideration, the World Bank deferred the release of loan. The State government and the APCRDA have tried to convince the World Bank representatives. However, the World Bank officials have deferred the loan decision giving tough time for the State government and watering down its hopes of a massive loan on hand.
The panel is not prepared for clearing the proposal not before middle of 2019 by which time the World Bank plans to have another round of inspection in Amaravati and interaction with the farmers, who have complained against the irregularities in the land pooling system.
With the fresh decision of the World Bank, the TDP government is disappointed as it had planned to begin the infrastructure works in the capital, in addition to the present seed access road, before going for the next election