AIIB pulls out of Amaravati

Vastavam web: 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.