Why World Bank drops $300 Million funding to Amaravathi ?

Written By Siddhu Manchikanti | Updated: July 21, 2019 19:00 IST
Why World Bank drops $300 Million funding to Amaravathi ?

Why World Bank drops $300 Million funding to Amaravathi ?
The World Bank has reportedly pulled out $300 million lending to Amaravati Capital City project in Andhra Pradesh. The Indian government withdrew its request the bank said, while the ruling YSR Congress party accused former chief minister Chandrababu Naidu of irregularities.
Though the World Bank did not assign any reason for pulling out, it took into consideration various complaints it has received from people’s groups about environmental concerns and forcible taking over of fertile land.
This comes as a jolt to the Andhra Pradesh government, as the World Bank has “dropped” out of the Amaravati Sustainable Infrastructure and Institutional Development Project, pushing the state capital city’s development into further jeopardy.
For this situation, Chandrababu Naidu held YCP responsible for the present situation alleging Main Opposition had provoked Farmers to lodge complaints with the World Bank when TDP was in power. Govt Whip Srikanth Reddy shot back at TDP saying World Bank has withdraw funding due to the atrocities of Chandrababu Naidu.
Actually, World Bank decided to conduct an in-depth inspection after Farmers in Amaravati and NGOs submitted petitions objecting the funding for the concrete jungle. A letter was sent to the YCP Government in this regard recently.
Regarding this, YCP government sought more time to consider the request placed by the World Bank citing it's a new government. Immediately, YSRCP government withdraw the he request for funding Amaravati why because inspection by the World Bank sets an unwarranted precedent and could have a negative impact on the other major projects in the country.