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Amaravati May Lose Status of Andhra Pradesh Capital Due to Funds Crunch - Report

Infra News - Published on Fri, 23 Aug 2019

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Financial Express reported that both the World Bank and the Asian Infrastructure Investment Bank decided not to fund the Amaravati project, which had earlier committed USD 500 million to it. Once touted to become a world class city, Amaravati is unlikely to continue as the capital of Andhra Pradesh. The reasons being cited include severe fund crisis, change the decision of former chief minister Mr N Chandrababu Naidu and gain votes of those farmers who had given up 33,000 acre.

On a technical note for change of capital, the government has hinted that it is because of flood-prone areas in and around the Amaravati region. The decision is pending as chief minister YS Jagan Mohan Reddy is on a personal visit to the US and is expected to be back during the weekend. However, the probabilities are more for change in capital as there is a review of all land projects which were signed in the last five years.

According to sources in the chief minister’s office, the state government has prepared a detailed feasibility report for a new capital city. “We have submitted a report to the government for a new location. It will go through detailed analysis by various departments. We do not want to announce the location in order to avoid insider information among party members, which could lead to a hike in land prices,” a senior bureaucrat said on condition of anonymity.

However, local reports say the new location will be in the Krishna-Guntur district and not very far away from Amaravati. So, all construction activities have been stopped in the city.

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Posted By : Mohan Sharma on Fri, 23 Aug 2019
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