Amaravati is set to receive a fresh round of international financial support, as the World Bank has confirmed the release of USD 200 million (approximately ₹1,670 crore) for the ongoing Amaravati Capital City Phase‑I Development Project by December 2025.
According to senior officials in the Andhra Pradesh government, the upcoming disbursement marks the second tranche under the global lender’s committed funding of USD 800 million, channelled through the International Bank for Reconstruction and Development (IBRD) – the lending arm of the World Bank Group.
The World Bank and the Asian Development Bank (ADB) have each pledged USD 800 million, amounting to a total of USD 1.6 billion (₹13,600 crore) for Amaravati’s initial development phase. Complementing this, the Government of India has committed an additional ₹1,400 crore, under the total ₹15,000 crore investment earmarked for Phase‑I.
The Phase I development of Amaravati Capital City Project includes, on which second installment will be utilised, includes:
- Construction of trunk infrastructure works to provide essential services for the city
- Development of the Amaravati Government Complex as the seed area, enabling necessary public functions of the state capital
- Delivery of neighborhood basic infrastructure for priority development areas
- The funds will also support implementation of environmental and social management measures and ensure compliance with global standards.
- The investment helps fill financial gaps and drives major civil works and infrastructure development in Amaravati.
The first installment of USD 207 million was released earlier in March 2025, of which nearly half has already been utilised for key civic infrastructure and foundational works across the new capital region, said by S Suresh Kumar, Principal Secretary ( Municipal Administration and Urban Development). Mr. Kumar said that 75% utilisation of the first tranche is a prerequisite for receiving the next release.
“Almost about, I think around ₹1800 crore or something they have released already. So out of that I think we have, I think only about less than 50 per cent only we have spent till now. I think before December we should be able to claim the next instalment. It will be around a similar amount only,” he told PTI.
Monthly inspection teams from both the World Bank and ADB continue to monitor the project’s implementation through site visits, audits, and progress reviews with the Capital Region Development Authority (CRDA) in Amaravati.
“So they both will verify the records. They will also have meetings with our teams, CRDA (capital region development authority) officers and then they will also conduct field inspection. They also interact with me every month,” Mr. Kumar added.
In its latest update, the World Bank rated the overall implementation at Amaravati as “satisfactory”, confirming that key Disbursement‑Linked Results (DLRs) – notably the formation of the Environmental and Social Management Unit (ESMU) and initiation of construction – have been fully achieved.
The Amaravati Capital City Development Program, jointly supported by the World Bank and ADB, is designed to create a climate‑resilient, inclusive, and sustainable capital city for Andhra Pradesh. Investments focus on trunk infrastructure, public buildings, affordable housing, and ecological restoration for land pooled under the Land Pooling Scheme (LPS).
Both multilateral banks are also extending technical expertise to enhance Andhra Pradesh’s capabilities in urban planning, governance, climate adaptation, and social inclusion, making Amaravati a potential model for India’s future greenfield city projects.
With the new USD 200 million likely to be released by December, Amaravati’s development momentum is expected to accelerate, particularly in constructing major urban infrastructure and resettlement amenities.
Officials say that the next six months will be crucial for maintaining compliance and achieving additional milestones, paving the way for sustained financial flow and global recognition of Amaravati as India’s next-generation sustainable capital.
As per the WB document, the Department of Economic Affairs at the Centre is the borrower while the Andhra Pradesh Capital Regional Development Authority is the implementing agency.