Setback to Naidu, World Bank returns plea for funding Amaaravati city

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In a severe setback to the Andhra Pradesh Chief Minister Chandrababu Naidu efforts to take up infrastructure development works in capital city Amaravati from last month, after obtaining World Bank funds, the Bank has reportedly returned the same raising several apprehensions.

The World Bnak officials in a letter to the Andhra Pradesh Capital Region Development Authority (CRDA), the prime government agency for the construction of the capital city, seeking clarification on the legality of land acquisition without applying Land Acquisition Act, 2013.

CRDA approached the World Bank on August 8, 2016, seeking Rs 4,770 crore financial assistance towards provisions of roads, drainage and drinking water. It also reminded that the government is yet to acquire 3,000 acres applying 2013 Act. Earlier, World Bank delegation visited the Amaravati area and examined acquisition of 32,000 acres under Land Pooling process.

During their visit some formers alleged their lands were forcefully acquired though they were insisting application of 2013 Act. Later, the Bank team has reportedly conducted a confidential probe on this issue and obtained written objections from some farmers.

According to sources, those farmers complained that here no rule of law is being applied and they were pushed to severe hardships. They have pleaded them to consider critically on issue of funding to such loop-sided project.

In the background of such objections, the World Bank Chairman has written a letter to CRDA last month seeking on how they would resolve problems related to non-implementation of 2013 Act and also objections related to environmental issues.

Bank’s Indian representative Raghu Kesavan also made it clear that unless complete information is provided with regard to environmental approvals, he cannot recommend for funds release. Referring to CRDA’s clarification that they would apply 2013 Act to take land from farmers, who are objecting for Land Pooling system, he has reportedly wondered is it valid to apply two different systems for land acquisition for the same project?

The government officials are fearing that with the present trend of World Bank officials, it is unlikely for the Bank to give a clarity on its funding till May, 2017.

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