Amaravati’s mega transformation: World Bank approves $800 million to create India’s next economic powerhouse – India News

The World Bank has approved a significant loan of USD 800 million to support the development of Amaravati, a city poised to become the new capital of Andhra Pradesh. Located along India’s east coast, Amaravati is set to play a key role in the broader metropolitan region, which will also include the cities of Vijayawada and Guntur. This ambitious project is part of India’s strategy to build sustainable and livable urban centres that can accommodate the growing urban population in the coming decades.

Growth and Sustainability

The funding will be directed towards the Amaravati Integrated Urban Development Program, which aims to establish the city as a well-managed, climate-resilient growth centre. According to the World Bank, the project will harness global expertise to design city institutions and infrastructure that can stimulate economic opportunities and foster long-term sustainability.

Auguste Tano Kouame, the World Bank’s Country Director for India, highlighted the importance of this project for India’s urban future. “With its urban population expected to double to 950 million by 2050, India aims to build sustainable and livable cities as growth hubs, and Amaravati offers an exciting opportunity to model this urban transformation,” he said in a statement.

PM Modi in Prayagraj: Rs 7,000 crore road and corridor projects to be launched tomorrow – Details inside

Industrial AI startup Haber raises $44 million from Creaegis, BEENEXT, Accel

Bharatmala Pariyojana advances: 26,425 km projects awarded, 18,714 km completed

Centre aims to make post offices key to rural India’s financial growth

Expected Population Growth and Future Plans

Currently, the population of Amaravati is around 100,000, but with the city’s development, this figure is expected to grow rapidly over the next decade. The government’s master plan envisions a city that can accommodate up to 3.5 million residents by 2050. This population growth will be supported by well-designed infrastructure and urban amenities that cater to the needs of future inhabitants.

The first phase of Amaravati’s development will be supported not only by the World Bank but also by the Asian Development Bank (ADB), which has also committed significant funds to the project. Together, these international financial institutions will help lay the groundwork for Amaravati to become a model for sustainable urban growth in India.

A Catalyst for Private Investment and Financial Sustainability

The World Bank’s financing will play a key role in attracting over USD 600 million in private-sector investment, further bolstering the city’s financial sustainability. The focus will be on building key infrastructure elements such as a road grid, public transport systems, and advanced flood-mitigation and water/wastewater systems. These infrastructure components are vital to ensuring the city can meet the needs of its future residents while maintaining sustainability in the face of climate change.

Loan Terms and Long-Term Impact

The loan of USD 800 million, which has a final maturity of 29 years and a grace period of six years, is structured to provide long-term support for the development of Amaravati. The World Bank’s contribution will help fund the city’s trunk infrastructure, ensuring that it is well-equipped to handle the challenges of rapid urbanization.

The partnership between the World Bank and the government of Andhra Pradesh marks a critical step in realizing Amaravati’s potential as a major economic hub for the state and the region. As India strives to create cities that can accommodate millions of new residents in a sustainable manner, Amaravati is set to be a model for future urban developments across the country.

Collaborative Efforts with the Asian Development Bank

In addition to the World Bank’s contribution, the Asian Development Bank (ADB) has also approved a USD 788.8 million loan for the first phase of Amaravati’s development. This joint effort between the World Bank and ADB underscores the international commitment to supporting India’s urban growth and ensuring that new cities like Amaravati are designed with the future in mind.

With substantial funding, a clear vision for urban development, and international support, Amaravati is on track to become a cornerstone of Andhra Pradesh’s economic future. As the city evolves, it is expected to become a vibrant, sustainable, and resilient urban centre that can accommodate millions of people while offering economic opportunities and improving the quality of life for its residents.

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}