ADB approves US$ 788.8 million loan to develop Amravati

The Asian Development Bank (ADB) has approved a US$ 788.8-million (Rs 6,620 crore) loan to develop Amaravati as a green and smart capital city with world-class infrastructure.

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The Manila-based Asian Development Bank (ADB) has sanctioned a US$ 788.8-million (approximately Rs 6,620 crore) results-based loan to support the development of Amaravati, the greenfield capital city of Andhra Pradesh. The loan, valued at 121.97 billion Japanese yen, aims to transform Amaravati into a green and smart city with world-class infrastructure, enhancing its role as a regional growth hub.

The Amaravati Inclusive and Sustainable Capital City Development Program is designed to create a city that not only drives economic growth but also fosters job creation and improves living standards for its residents. Public investments under the program will prioritize key infrastructure projects, including trunk infrastructure, a government complex, and neighborhood facilities. Farmers participating in the land pooling schemes will also benefit significantly from these developments.

The initiative emphasizes sustainability, social inclusion, and climate resilience, aligning with Andhra Pradesh’s vision of creating a model capital. To achieve this, ADB will work in collaboration with other multilateral development banks (MDBs), ensuring the timely and high-quality execution of infrastructure and services.

ADB’s Country Director for India, Mio Oka, highlighted the significance of this collaboration, stating, “ADB and other MDBs will bring global expertise and technical support to the Government of Andhra Pradesh, laying the groundwork for a dynamic, sustainable, and vibrant capital city. Our partnership will span climate-resilient urban planning, governance and institutional frameworks, and social inclusion.”

Oka further emphasized Amaravati’s potential as a replicable model for urban development in India. “We believe Amaravati will not only serve as a template for developing greenfield cities but also guide the systematic and orderly transformation of peri-urban areas in existing cities across the country,” she added.

The program’s vision extends beyond Amaravati, aiming to set a precedent for sustainable urban development nationwide. By incorporating advanced urban planning principles and leveraging global expertise, Amaravati is poised to emerge as a smart capital city that balances growth with environmental and social sustainability.

This strategic partnership between ADB, other MDBs, and the Government of Andhra Pradesh signifies a commitment to creating a future-ready city that embodies innovation, sustainability, and inclusivity. With Amaravati’s transformation, Andhra Pradesh aims to position itself as a leader in sustainable urban development in India and beyond.