Asian Development Bank Approves $788 Million Loan for Amaravati Development in Andhra Pradesh.

The Asian Development Bank (ADB) has approved a $788.8 million results-based loan to the state of Andhra Pradesh for the development of Amaravati as a green and smart capital city. The loan, valued at ¥121.97 billion, will fund the Amaravati Inclusive and Sustainable Capital City Development Program, which aims to transform Amaravati into a growth hub with world-class infrastructure.

The program is designed to enhance economic opportunities, create jobs, and improve living standards for residents. Public investments will focus on critical infrastructure, including trunk infrastructure, government complexes, and neighborhood amenities, particularly benefiting farmers involved in the land pooling schemes.

This initiative will be supported by other multilateral development banks (MDBs) to ensure timely delivery of high-quality infrastructure and services. “ADB and other MDBs will provide global expertise and technical support to the Government of Andhra Pradesh, helping create a dynamic, sustainable, and vibrant capital city,” said Mio Oka, ADB Country Director for India.

The development program aims to make Amaravati a model for not only greenfield cities but also the systematic transformation of peri-urban areas in other cities across India. Key areas of focus include climate-resilient urban planning, improved governance and institutional frameworks, and social inclusion.

The program will enhance access to infrastructure, green spaces, water and sanitation, low-carbon transport, and flood mitigation systems. It also seeks to attract anchor investors, generate private investment, and create jobs, with a focus on benefiting women and youth.

HBL