The Jaganmohan Reddy government is getting caught in the eye of a big international controversy. The Asian Infrastructure and Investment Bank, Beijing, China, is taking strong objection to the reversal of many ongoing projects in Andhra Pradesh. The bank wrote to the Central Government expressing its dissatisfaction with the trend of a new government stopping and reviewing all those projects that were begun in an earlier government. The AIIB Bank is alarmed at the World Bank’s withdrawal and it has also decided to cancel its proposed Rs 1400 Cr loan to the Amaravati Capital City project.
Unlike the World Bank, the AIIB is expressing concern over the fate of AP projects for which the bank has already given huge loans.Till now, the AIIB Bank has provided Rs 7,000 Cr worth loans to AP with which massive projects were taken up in urban drinking water and underground drainage, rural roads and 24-hour uninterrupted power supply project. The bank told the Centre that the stoppage of works and their review would derail the overall projects which may lead to bad results. This may set a bad trend in other states as well leading to future hurdles in credit. The bank takes failure of any of its projects seriously. It will not hesitate to impose fines accordingly on the state concerned.
This is just beginning