World Bank withdraws out of Amaravati Capital project

The representatives of the Working Group on International Financial Institutions (WGonIFIs), and the communities connected, the World Bank is backing off the  Amaravati Capital City project in Andhra Pradesh (AP).On Thursday, a press release was rolled out by the WGonIFIs, which said that the World Bank has decided to withdraw back $300 million which were lend for the project in Andhra Pradesh. The press release also states the reason for this conclusion. The World Bank concluded this withdrawal, after years of hearing to the various representation by the many people's movements and the civil society organizations. These representations were augmented by the communities which were getting affected by this accountability mechanism.


“With uncertainty hovering above us in respect to our land and livelihood, we had suffered sleepless nights with fear and pain. The struggle has made a mark in our lives that we can never forget. We hope the larger message of the World Bank’s pulling out of this project will be heard by the state and other financiers and will address the concerns of people with honesty and commitment," the release quoted Mallela Sheshagiri Rao from the Capital Region Farmers Federation.


The authorities of the state government and the AP Capital Region Development Authority have denied any kind of comment on the situation.

"We can't confirm this as of now, as a communication on this has not yet come out to us," said a CRDA official when asked about the matter and who did not want to be named.

The cause of this pullback of money is been called upon the present YSR Congress Party (YSRCP) which is leading the government in AP, headed by the chief minister Y.S.Jagan Mohan Reddy. The blame comes from a senior Telugu Desam Party (TDP) leader, who stays anonymous.


"Till we were there, it was fine. Jagan came and sabotaged the project. Let YSRCP stop Amaravati's development if they can and run the state with the help of NGOs who worked against the interests."

The division of Andhra Pradesh as Telangana and Andhra Pradesh was sanctioned in 2014, and Hyderabad was proposed as a capital shared by both of the states for 10 years. Chief Minister of that period was N. Chandrababu Naidu proposed the development of the capital city in following years. An amount of $300 million was lent by the World Bank on this project as per the stats on the website of the World Bank.


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