World Bank Drops 2,000-Cr Loan Proposal For Amaravati Project

A proposed loan worth $300 million or about Rs. 2,000 crore for Andhra Pradesh's new capital Amaravati has been dropped by the World Bank after the central government reportedly withdrew the application. World Bank spokesperson Sudip Mozumder told media that the World Bank's Board of Executive Directors has been informed that the proposed project is no longer under preparation following the government's decision. "The project was only being prepared, it was in the initial stage," he said, but refused to comment on why the government had taken the decision to withdraw its application. "That is for the government to say." The World Bank had reportedly sought permission from the centre to conduct an independent investigation into complaints of irregularities like forced land acquisition. But the government reportedly did not want to allow that and instead withdrew its application.