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Why won’t World Bank give loans for Navaratnalu?

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Why won’t World Bank give loans for Navaratnalu?

The Jaganmohan Reddy government is eagerly awaiting approval and release of Rs. 6,000 crore loan from the New Development Bank (BRICS Bank). The urgency for this is the high level of concern in the government to mobilise money to start Jagan’s flagship welfare pogrammes under ‘Naravaratnalu’. Several times in the past, CM spoke confidently of World Bank and Asian Bank giving loans to his Cash Transfer schemes but nothing of that sort emerged.

As Jagan sent wrong signals on Amaravati Capital City project, the World Bank immediately withdrew from the project. Because of this, thousands of crores of low interest loans could not be secured for Andhra. World Bank strictly monitors whether its loans are being spent in intended developmental projects or not. Now, there is no favourable atmosphere in AP to win back confidence or loans from World Bank.

Amid this, the BRICS Bank has now entered the scene. Clearly, Jagan Circar has asked Rs. 6,000 Cr loan immediately for the purpose of developmental projects. Of the loan is asked for Navaratnalu, there is lesser chances of the bank approving the same. It is common sense any bank would give huge loans based on repaying capacity of the project concerned.

By the end of this month, Jagan is going to give Rs. 10,000 each to persons driving their own taxis and autos. From October 15, Rythu Bharosa is to be implemented to give Rs. 12,500 to each farmer. Afterwards, Rs. 15,000 is to be given to each mother under Ammavadi. Every month, Jagan Circar may be needing Rs. 7,000 crore nearly to feed his cash hungry non-productive Navaratnalu schemes.

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World Bank clarification on withdrawing from Amaravati raises more questions

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World Bank clarification on withdrawing from Amaravati raises more questions

It is known news that World Bank has decided against funding $300 million for Amaravati Sustainable Capital City Development Project. World Bank published in its website that the status of the project as ‘dropped’. Following that, there was debate in AP, about the consequences of the decision of the World bank and about possible reasons for the same. As the issue took a political turn and some people started alleging Jagan for this, World bank gave an official statement clarifying the reasons for dropping from the project.

Click here: https://www.telugu360.com/consequences-of-world-bank-opting-out-of-ap-capital-building-project/

World bank’s official statement on stepping back from Amaravati project:

World bank website clarified that, on July 15th the Government of India (GoI) withdrew its request to the World Bank for financing the proposed Amaravati Sustainable Infrastructure and Institutional Development Project. It also added that, the World Bank’s Board of Executive Directors were informed that the proposed project is no longer under preparation following the government’s decision. However, world bank clarified that it has dropped only from Amaravati project but not from other projects concerning Andhra Pradesh especially in the sectors of health, agriculture, energy and disaster management sectors.

Questions raised after World bank statement:

Firstly, World Bank clarified that it stepped back after the Government of India (GoI) withdrawing its request to the World Bank. People are wondering, whether Government of India consulted AP chief minister Jagan before doing so or not. If they had done it without consulting the state government, it only reveals BJP’s perception that Jagan cannot dare to question them. As bifurcation of the state left AP with no capital, building a new capital keeping in mind future administrative need is an important task before the government of AP. However, Government of India’s attitude in stopping world bank from giving loans reminds Telugu idiom – “Amma pettadu, adukku tinanivvadu”

Secondly, apart from GoI, state government also has role in this. Government of India’s decision letting people think that it is Jagan Reddy’s incapability to question the central government because of the ED and CBI cases on him is costing the future of AP. GoI may take it for granted that CM of AP will never be able to question them. Jagan needs to prove them wrong and convey people that he will be ready to fight with the centre to achieve the needs of the state. He needs to convey that, AP and it’s prospects are more important to him than anything else. Otherwise, he will be a silent spectator each time center acts against the interests of Telugu people.

Telugu360 is always open for the best and bright journalists. If you are interested in full-time or freelance, email us at Krishna@telugu360.com.

Why has Centre stopped World Bank loan to Amaravati?

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Why has Centre stopped World Bank loan to Amaravati?

Whatever has happened, it’s the Andhra people who are the ultimate sufferers. Now, they are caught in the crossfire between the Modi government at the Centre and the Jagan Reddy government in the state. The World Bank has eventually clarified that it has dropped its Rs 2,100 Cr loan to Amaravati Capital City project at the request of the Central Government. Why has it happened like that? The ruling YCP leaders are saying that the Jagan Reddy government is not responsible for the cancellation of the huge loan. The BJP leaders are also not clarifying why the Modi government took the drastic step.

Analysts say that on its own, the BJP will not dare to unilaterally stop the loan as it will bring bad image to the party among the Andhra voters. The Centre should have consulted AP before asking World Bank to cancel the loan. There has been no correspondence between the Centre and the state in the whole issue which eventually led to the loss of a good opportunity. The promise of building a Capital City for Andhra along the lines of Hyderabad and Delhi is now going down the drain. BJP AP leaders will have to answer for this.

Telugu360 is always open for the best and bright journalists. If you are interested in full-time or freelance, email us at Krishna@telugu360.com.

Modi regime gives silent blow to CM Jagan

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Modi regime gives silent blow to CM Jagan

Any State government should have to take the approval of the Centre for getting loans from international bodies like the World Bank and the Asian Infrastructure and Investment Bank. The Chandrababu Naidu regime convinced the Modi government and got World Bank loan sanctioned for Amaravati Capital City project. But the Jagan Reddy government took a unilateral decision to change the modalities of Amaravati project without informing the Centre. The YCP government should have informed the Centre about its changed approach to Amaravati project but it displayed considerable arrogance by not doing it.

What more, when the World Bank team asked Jagan Reddy government to arrange for a visit to Capital City, Jagan Team told them about its decision to change the overall project proposals. Taking it as a sign of violation of the previous agreement, World Bank informed the Modi regime about this. Modi Team took this as an insult as it had to hear the bad news from World Bank rather than from the needy state of AP. Immediately, the Centre asked the World Bank to cancel the Amaravati project as the new government in the state is not at all interested in the AP Capital City. Analysts say that this will certainly make Modi regime to reject any future proposals from AP. Already, the PPAs issue has strained Centre-AP relations to some extent.

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Consequences of World bank opting out of AP capital building project

Telugu360
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Consequences of World bank opting out of AP capital building project

It is known news that the World Bank has decided against funding $300 million for Amaravati Sustainable Capital City Development Project. The news that the World Bank’s website showing the status of the project as ‘dropped’, spread like wildfire and several doubts arose among people as well as economists about the fate of capital city and possible consequences on the economy of the state.

World Bank steps back on loan of $ 300mn:

Earlier, former CM Chandrababu Naidu sought the loan from the world bank and the bank also considered lending $300 million for infrastructure development in the capital city. However, some NGOs, Narmada Bachao Andolan and some other groups opposed the scheme of building the capital by acquiring land from farmers and building the capital near Krishna riverbank. These groups sent several petitions to World Bank asking the Bank to not fund this project. After inundated with these petitions, World Bank inspected the project again and previous TDP government-furnished World bank with all the required details. The inspection report was submitted in January’ 2019. Even though the report was not made public, it is learnt that the government was able to convince the Bank to provide the loan. Come election results, everything changed. The government changed and the priorities of government too. So, World bank sought the government fresh inspection report but the government replied it will need more time to decide on the same. Then, World bank opted out of the project and published on its website the latest status of this project that Bank has dropped from this project.

Consequences:

Firstly, World Bank stepping back on the proposal in the last minute cannot be seen as an isolated event. Reputed institution like world bank stepping back from partnering the project will definitely impact the private investors who want to invest in the other projects at capital. Even though it is very important to address environmental concerns, it needs to be remembered that developmental needs cannot be completely put off. Any government would try to strike the balance between developmental needs and environmental concerns. But AP government playing passive role and letting the bank step back is definitely going to send wrong signals among investors and this is going to hamper growth prospects of the state.

Secondly, as Center has already confirmed that it is not going to grant Special Category Status or industrial incentives to AP, the state needs to chalk out its own plan for growth. Without growth, the so-called welfare schemes, if implemented as promised, may lead to economic crisis in future. It may look like a far-fetched logic, but we need to consider the domino effect of the current decision of world bank. Overall the decision of AP government to play passive role in this issue is definitely a wrong move. It is only matter of time for people to realize the same.

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World Bank to give Rs 2,200 cr for Andhra healthcare project

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World Bank to give Rs 2,200 cr for Andhra healthcare project

The World Bank will provide Rs 2,200-crore loan to Andhra Pradesh for a project aimed at strengthening the state’s overall healthcare systems.

The Central and state governments and the World Bank on Wednesday signed the loan agreement for a $328-million project to improve the quality and responsiveness of public health services and increasing access of the population to an expanded package of primary health services.

The AP Health Systems Strengthening Project (APHSSP) will be implemented in the state with a focus on improved quality of care, improved responsiveness of public health services and increased access to an expanded package of primary health services, said the state government.

The $328-million loan from the International Bank for Reconstruction and Development (IBRD) has a six-year grace period and a maturity of 29 years and 6 months.

The agreement was signed by Bandana Preyashi, Director – MI, Department of Economic Affairs, Ministry of Finance, Government of India; Poonam Malakondiah, Special Chief Secretary to the government, Health Medical & Family Welfare Department, State Project Director, APHSSP, Government of Andhra Pradesh; and Mohini Kak and Kari L.Hurt, representatives of the World Bank India.

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No setback in financing Amaravati dev, World bank issues a clarification

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No setback in financing Amaravati dev, World bank issues a clarification

The World Bank issued a clarification on loan arrangement for Amaravati continues and made it clear that the inspection of land pooling will not impact financing the capital construction project.

“We would also like to clarify that the Inspection Panel process does not affect project preparation or implementation, and that, in the case of the Amaravati Sustainable Capital City Development Project, the Bank team will continue to work with the government to strengthen the preparation and design of the Bank-financed investments as per the agreed schedule”, said the press release.

It may be recalled that farmers have written to the world bank that the project about the forceful land acquisition of agriculture lands and resettlement issues. Several reports emerged that financing of the project is dependent on the Inspection Panel report.

However, as per the statement, the board is yet to decide if the Inspection Panel will carry out the investigation or not. Incase the process of due diligence is proposed, the Bank noted that it will take several months and will not impact project preparation activities.

The Bank is preparing an IBRD loan of US$300 million co-financed by a US$200 million loan from the Asian Infrastructure Investment Bank (AIIB) for Amaravati Capital City development project.

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World Bank registers farmers’ complaint on Amaravati land pooling

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World Bank registers farmers’ complaint on Amaravati land pooling

The World Bank has informed government of Andhra Pradesh that it has registered a case based on the complaints on forceful land acquisition from farmers for the construction of capital city Amaravati.

As per the reports in DC, Chairman of inspection panel of the world bank Gonzalo Castro de la Mata said, “After conducting initial due diligence and confirming that the request meets the (World Bank) panel’s admissibly criteria, I am notifying that I have registered this request”.

The World bank received a request from the farmers on October 8, 2016 to conduct inspection, but it did not register the complaint then citing that the project was in initial stages. It received similar request again on 25 May 2017 including 22 attachments of reports related to project, media articles and court documents. Another request was received on May 27 from a large group of farmers who alleged that they were not accurately consulted and the government is failing to comply with the bank’s standards. They also alleged that their livelihood, environment, food security and resettlement were harmed. After due diligence, the bank registered the complaint from the farmers.

It may be recalled that earlier this week, Andhra Pradesh Chief Minister N Chandrababu Naidu ordered the Capital Region Development Authority(CRDA) to strictly deal with people who are anonymously filing complaints with the World Bank. Chandrababu apparently clarified to the World Bank that about 150 farmers partook in their survey while 1,27,505 farmers gave up their land for the capital city project.

Financial assistance of $300 million through International Bank of Reconstruction and Development (IBRD) was all set to be approved on October 5 for development of 217sq km area in Amaravati, but the World bank has now asked its panel to submit report by July13.

Telugu360 is always open for the best and bright journalists. If you are interested in full-time or freelance, email us at Krishna@telugu360.com.

Gujarat fishermen sue World Bank’s lending arm, IFC 

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Gujarat fishermen sue World Bank’s lending arm, IFC 

In the first case of its kind against the private investment arm of the World Bank, fishermen and farmers from north-western India are suing the International Finance Corporation (IFC) in a US federal court over a $450m loan for a coal-fired power plant. The communities say the IFC has “destroyed their livelihoods” by reducing fish stocks and damaging the environment in Gujarat, according to a report published in The Guardian.

The case is filed in the District of Columbia circuit of the federal court system, as that is where the World Bank is based. But in a move decried by human rights advocates, the IFC says the complaint, filed by the NGO EarthRights International in April this year on behalf of those affected, “must be dismissed in its entirety” because the IFC is entitled to immunity from prosecution in the US under a treaty signed in 1945. According to the IFC, the International Organisations Immunities Act of 1945 gives it “the same immunity from suit and every form of judicial process as is enjoyed by foreign governments”. A verdict on whether the IFC’s immunity defence will hold, or whether the court will hear the case, is not expected before January 2016. “What are they afraid of?” asks Kristen Genovese, from the Centre for Research on Multinational Corporations (SOMO) in Amsterdam. “Any other institution – you can sue your government, you can sue corporations. Why can’t you sue the Bank? Why is it above the law? You need to have checks and balances.” At the moment, she adds, “the entire World Bank group essentially plays by its own rules”. The IFC is the branch of the World Bank that invests in the private sector in developing countries. In 2008, it announced a $450m loan for the 4,000 megawatt Tata Mundra “ultra mega power plant” near the port town of Mundra in Gujarat. The project was billed as critical to providing cheap and reliable power for India’s industrialisation, but critics have long raised questions about its environmental footprint. Asked for a response about the US legal case, the IFC said it could not comment on the suit.

what is the case?

Bharat Patel, general secretary of Machimar Adhikar Sangharsh Sangathan (MASS), a body representing fishermen in the area, explains the case this way. “The World Bank is meant to reduce poverty, but this type of investment by the IFC has created poverty,” he says. “For this project, they want good engineers … and in our area and our communities, people are not very well educated. The literacy rate is 20%, so they are obviously not going to be involved in this project. Around 200 to 300 are working [at the power plant], so you destroy 10,000 fishermen’s livelihoods for 200 people’s jobs. It’s not justifiable.” For more click here.

 

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World Bank clears huge loan package for AP

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World Bank clears huge loan package for AP

Pleased at the reforms effected in AP to facilitate ease in doing business, the World Bank has come forward to lend an assistance of Rs 2,400 crore to strengthen power sector in the State by carrying forward the reforms at all levels.

This was disclosed by K Vijayanand, Chairman & Managing Director of APTRANSCO, during a review meeting on power situation in the State with senior officials. According to Vijayanand, the World Bank has cleared a proposal of AP for assistance of Rs 2,400 crore to take up reforms in the power sector. It may be recalled here that last week World Bank has assigned second rank on all India scale in the ease in doing business based on the reforms implemented to attract the investors. Andhra Pradesh is on an ambitious mission to provide quality power supply to consumers, with an investment of Rs 27,000 crore.

Because of the steps taken by the Discums to curtail the power leakages, Andhra Pradesh is able to save Rs 1,950 crore by cutting Transmission & Distribution(T&D) losses in the last 18 months. “These has been achieved through the implementation of an action plan. It paved the way for reduction of T&D losses from 17.05 per cent in 2010-11 to 10.54 per cent now, a reduction of 6.51 per cent till August 2015,” he claimed.

To carry forward this state the Discums have developed a road map for further reducing the T&D loses from 10.54 per cent to single digit by 2016-17 on a par with the advanced countries like US, UK South Korea and France. In curbing the T&D losses Andhra Pradesh is far ahead of other states T&D losses in different States during 2015: AP: 10.54 pc. Maharashtra: 14.20 per cent; Punjab: 14.21 per cent; Gujarat: 14.60 per cent; HP: 14.69 per cent; Kerala: 16.04 per cent; Karnataka: 18.30 per cent; Uttaranchal: 18.60 per cent; Tamil Nadu: 20.92 per cent. As the AP is the leader in reforms, the World Bank wants now to push further the reforms.

Telugu360 is always open for the best and bright journalists. If you are interested in full-time or freelance, email us at Krishna@telugu360.com.

Ease of Doing Business: TS upset over World Bank

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Ease of Doing Business: TS upset over World Bank

The World Bank report on ease of doing business in the Indian states seems to have affected morale of the new-born Telangana state. The state expressed displeasure at the World Bank report that pushed the TS to the 13 positions with 42.45 pc. marks. Telangana government which recently released its investor-friendly industrial policy is hopeful of attracting huge investments. The very objective 10-day trip to China by chief minister K Chandrasekhar Rao is to woo Chinese investors to the state banking on the friendly enviroment created in the state by the TRS government. But, the findings of the World Bank study have told a different story. What worried the TRS is the time of the report ie it is made public when KCR busy in showcasing the investment attractiveness of Telangana. If it is an ordinary study, Telangana would not have taken this into congnizance. But, the reports is prepared World Bank in association with professional organizations.

TRS expressed doubts over authenticity of the report. Party MP from Bhongir Dr Boora Narasiah Goud said all the NDA ruled states had got good ranking in the report. ” As we all know , Maharashtra, Tamil Nadu stand first in attracting the investments. But, the ranks are given to Gujarat and Andhra Pradesh. And Telangana is assigned 13th rank. This naturally gives rise to doubts in the minds of the people,” he said questioning reliability of the parameters followed in the preparation of report.

“The T state is attracting investments in a big way. Telangana is faring well on all the parameters individually such as Corruption, Land availability, Getting permission, Power, Land registration etc. Then, how can Telangana be pushed to 13 position. Doubts are being raised on the authenticity of the report,” Dr Goud said.

He also said the preparation of report lacked transparency. ” An organization like World Bank should adopt a transparent methodology while assigning ranks to the state as a whole,” he added.

Telugu360 is always open for the best and bright journalists. If you are interested in full-time or freelance, email us at Krishna@telugu360.com.

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