Latest National News
New Delhi: The State government’s proposal for a loan of ₹3,324 crore from the World Bank towards construction of Capital city Amaravati was being appraised, Union Finance Minister Arun Jaitley said in the Rajya Sabha . Mr. Jaitley said this in reply to a starred question on the status of the proposal put by YSR Congress member V. Vijay Sai Reddy.
The Union Minister said once the appraisal was completed, negotiations would be held and only after that the loan would be approved by the World Bank. The Finance Minister went on to explain that as per the guidelines of the Centre for general category States such as A.P., the external assistance from multilateral development banks such as the World Bank should not exceed 70% of the total project cost.
The State government should find its own resources for the remaining 30 %. He said once the project started, the State government would spend money for construction of the capital and the World Bank would release the amount after the State government applied for reimbursement.
Minister of State for Finance P. Radhakrishnan, in reply to another question put by Mr. Vijayasai Reddy, said that the Centre had till now released a sum of ₹1,500 crore towards construction of Raj Bhavan, High Court, Secretariat, Legislative Assembly, Legislative council and other essential infrastructure in the State capital Amaravati. The State government had furnished utilisation certificates for an expenditure of ₹1,583 crore to the NITI Aayog.