Amaravati, October 23, 2025 - The World Bank is set to release another $200 million by December for the Amaravati Capital City Phase-I development. This disbursement represents the second tranche of the $800 million pledged by the World Bank for the project.
The World Bank, along with the Asian Development Bank (ADB), has committed to funding a total of $1.6 billion (Rs 13,600 crore) for the first phase of Amaravati's development. Of this, both the World Bank and the ADB are each expected to contribute $800 million. In addition to the World Bank and ADB funding, the central government will contribute Rs 1400 crore towards Phase-I, bringing the total investment for this phase to Rs 15,000 crore.
S Suresh Kumar, Principal Secretary of Municipal Administration and Urban Development, stated that the World Bank has already released $207 million, with nearly 50% of that amount already spent on various construction and development works.
Amaravati was founded and declared as the new capital of Andhra Pradesh in 2014, after the bifurcation that resulted in the residual state having no capital city. Hyderabad served as the temporary capital, despite being located in the new state of Telangana. The establishment of Amaravati involved a land pooling initiative where farmers from the Guntur district gave 33,000 acres of farmland to the Government of Andhra Pradesh in return for developed plots and lease payments for a 10-year period.
The Amaravati project aims to establish a well-managed, climate-resilient urban center that generates jobs and improves the lives of its residents, especially the most vulnerable. The World Bank's involvement includes leveraging international knowledge in sustainable urban design to build the city's infrastructure, including road networks, public transport, and water and wastewater systems.
The city's master plan envisions a 217 sq km area that can accommodate 3.5 million people by 2050. The World Bank's financing is expected to catalyze over $600 million in private sector investment, contributing to the city's financial sustainability and providing economic opportunities for its residents. The program aims to directly train 17,000 people, with a focus on women, to improve their access to better-paying jobs.
Currently, the Andhra Pradesh government is accelerating construction activities across Amaravati. Minister for Municipal Administration and Urban Development P. Narayana, has stated that the construction of Amaravati is progressing rapidly and will be completed within three years. The Andhra Pradesh Capital Region Development Authority (APCRDA) has finalized tenders, and contractors have commenced construction on major projects throughout the city. Residential towers for members of the Legislative Assembly and Legislative Council are nearing completion. Construction is also progressing on quarters for All India Services officers, Principal Secretaries, and Secretariat officials.
