The CRDA has said that it was negotiating for an early sanction of the loan.

Centre cuts World Bank loan needed for Andhras capital Amaravati by halfFile photo: Facebook/Andhra Pradesh CM
news Bifurcation Tuesday, September 20, 2016 - 07:38

Andhra Pradesh which is presently seeking funds to build its new capital Amaravati was in for a shock after the Centre reportedly cut down the quantum of loan that the state wanted from the World Bank by half.

PTI reported that the Department of Economic Affairs (DEA) under the Union Ministry of Finance has now reduced the loan amount from 1 billion USD to 500 million USD only.

"The DEA had given in principle approval for 1 billion USD loan but subsequently realized that rules did not permit the quantum in a single tranche. Accordingly, the loan proposal was cut down by half," a top official overseeing the issue told the news agency.

PTI also quotes CRDA officials as saying:

"We have explained our position on various environmental issues related to the project. They have also conducted field visits and we are negotiating with them for early sanction of loan."

Meanwhile, chief minister Chandrababu Naidu is reportedly seeking fresh designs for the state capital.

The New Indian Express reported:

According to reliable sources, the chief minister was not fully satisfied with the designs that had come to him till now. Naidu reportedly made an indication to this effect when Mumbai-based architect Hafeez Contractor and two architects from Netherlands called on him at his office in Vijayawada on Monday.

Earlier this week, the National Green Tribunal (NGT), which is presently hearing a petition against construction of Andhra’s new capital Amaravati on the banks of the River Krishna, expressed doubts over the state's plans to elevate the 10,000-acre capital city to protect it from getting flooded.



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