Amaravathi: After World Bank dropped funding for Amaravathi Capital City Development Project, Andhra Pradesh government on Tuesday said it will take a decision on the project soon.
State Minister for Municipal Affairs Botsa Satyanarayana said, “Discussions are going on over development of Amaravathi Capital. We will announce a decision very soon."
Satyanarayana also said that the construction cost of the Andhra capital is much higher in comparison with other cities as they need to construct canals and dams to avoid floods.
Jagan Reddy government had given in-principle approval to stop the project after coming to power citing their preference is to clear the ongoing works. Telugu Desam Party (TDP) has been vehemently opposing the decision.
The state government, on the other hand, maintained that they have more priorities than capital development. Thousands of farmers had given over 34,000 acres of land for the capital project. Real estate sector also affected by the decision to stop the capital city project.
The World Bank had recently dropped its plan to extend a loan of $300 million (nearly Rs 2,065 crore) to Andhra Pradesh for the construction of Amaravati.