Andhra Pradesh’s ambitious capital city project, Amaravati, has received a major boost with the World Bank approving the release of the second tranche of funding worth USD 200 million (approximately ₹1,700 crore) by the end of this year. This financial assistance marks another significant step toward realising the long-pending vision of developing Amaravati into a world-class capital city.
The World Bank and the Asian Development Bank (ADB) have each pledged USD 800 million, together contributing a massive USD 1.6 billion (around ₹13,600 crore) for Phase I of the Amaravati Capital City Development Project. In addition to this, the Government of India will provide ₹1,400 crore as part of its overall commitment of ₹15,000 crore for the capital’s initial phase.
According to S. Suresh Kumar, Principal Secretary for Municipal Administration and Urban Development, the World Bank has already disbursed USD 207 million as the first instalment earlier this year. Out of this, nearly half has been utilized for key infrastructure works within the capital region. “Around ₹1,800 crore has been released so far. We have spent slightly less than 50 percent, and we expect to reach 75 percent utilization by December. Once we meet that target, we will be eligible to claim the next instalment, which will be a similar amount,” said Suresh Kumar.
Under the World Bank’s funding norms, the state can apply for the next tranche once 75 percent of the first disbursement has been spent. Officials are confident that the progress made so far will help secure the next phase of funding on time.
Teams from both the World Bank and ADB conduct monthly inspections of the Amaravati project. They verify financial records, meet with officers from the Capital Region Development Authority (CRDA), and inspect construction sites to ensure proper implementation. These regular reviews have helped maintain transparency and accountability throughout the process.
With the next phase of funding around the corner, Amaravati is set to witness accelerated construction activity and infrastructure expansion. Roads, utilities, and public infrastructure that had been delayed are now expected to gain fresh momentum, giving shape to the long-envisioned dream of a modern, sustainable capital city.
If the current pace continues, Amaravati could soon emerge as a symbol of Andhra Pradesh’s resurgence, a city that blends global standards with local aspirations.
