Another bank pulls out of Amaravati

Another bank pulls out of Amaravati

China’s AIIB pulls out of AP’s dream project

New Delhi: After the World Bank, it is now the turn of the Asian Infrastructure Investment Bank (AIIB) of China to pull out of the Amaravati project.

This decision was conveyed to a foreign news agency through mail which sought to know the status of the MoU between the bank and the Andhra Pradesh government with the consent of the Centre.

The decision raises a serious question on the future of the dream project of Amaravati. The question is not whether a fabulous capital would come up and when any longer.

It is a simple question rather now: Will there be a capital city at all? Or, the plan is to just bridge the two cities, Vijayawada and Guntur, with a functional capital so that it grows naturally like other cities over a period?

The AIIB was to release a loan of $200 million (approximately Rs 1,300 crore) for Andhra Pradesh for the Amaravati Sustainable Infrastructure and Institutional Development Project.

The World Bank too was supposed to fund the project, but withdrew following the Centre's decision to withdraw consent for the same when the World Bank decided to institute an inquiry into the complaints it received against the land pooling for the Capital City by the previous state government led by Chandrababu Naidu of the TDP.

It may be recalled that the present YSRCP government led by Y S Jagan Mohan Reddy is not that keen to go ahead with the previous government plans and built a dream capital for the state funds for which are difficult to come by.

The new CM had already expressed his disinterest in it and is said to be content with having a basic infrastructure for running the government now. He is also likely to order a probe into all land allocations made during the previous government's tenure to private parties.

This would spell the doom for the planned projects as of now. On the other hand, the Centre is also not keen to do the extra mile any longer for the State.

Political priorities of the Centre certainly limit it to regular infrastructure funding as those of the Smart Cities, etc and it shall keep funding the same.

Already there is a running feud between the TDP leadership and the Chief Minister over the moves of the latter.

Former Chief Minister N Chandrababu Naidu has been accusing the present incumbent of adopting vengeful politics which would harm the interests of the state.

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