World Bank Approves $800M for Amaravati Urban Development

The World Bank approved a USD 800 million loan for the Amaravati Integrated Urban Development Program in Andhra Pradesh, India. The funding aims to transform Amaravati into a climate-resilient, well-managed economic hub. The loan, requested by the Government of India, has a 29-year term with a six-year grace period.

The World Bank has sanctioned an USD 800 million loan to facilitate the Amaravati Integrated Urban Development Program, aimed at developing Andhra Pradesh's capital city, Amaravati, into a climate-resilient growth center.

The approval came from the Bretton Woods institution's Board of Executive Directors in a meeting held in Washington, USA. The loan is intended to establish Amaravati as a well-managed city that promises economic growth and job generation, particularly benefitting the most vulnerable sections of society.

According to the World Bank, the Government of India sought the loan to transform Amaravati into a strategic economic hub. Notably, the loan has a maturity period of 29 years with a grace period of six years and will be sanctioned in Japanese Yen. Auguste Tano Kouame, the World Bank's Country Director for India, emphasized the role of urban transformation in India's future.

(With inputs from agencies.)