The World Bank’s Board of Executive Directors has approved an $800 million loan for the Amaravati Integrated Urban Development Program, aimed at developing Amaravati as Andhra Pradesh’s greenfield capital city. The announcement was made on Friday following the board’s meeting in Washington, USA, on Thursday.

In a press release, the World Bank stated, “The $800 million Amaravati Integrated Urban Development Program seeks to establish Amaravati as a well-managed, climate-resilient growth center in Andhra Pradesh, enhancing job creation and improving the lives of current and future residents, particularly the most vulnerable.”

The Government of India requested the loan to develop Amaravati into an economic hub and the state capital. The loan has a 29-year maturity period, including a six-year grace period, and will be disbursed in Japanese Yen.

Auguste Tano Kouame, the World Bank’s Country Director for India, emphasized the institution’s role in bringing global expertise to support the design of city infrastructure and institutions that promote economic opportunities for diverse groups, including women, youth, and marginalized communities.

“With India’s urban population expected to double to 950 million by 2050, the country is striving to build sustainable, livable cities as growth hubs. Amaravati presents a unique opportunity to model this urban transformation,” Kouame said.

Input: BS