Amaravati has continued to get caught up in the cycle of woe, and as such, remains in limbo for all these years. What’s worse, is that despite the idea was mooted at the onset when Telugu Desam Party was at the helm of affairs five years back, YSR Congress Party went slow over it and had never gone for implementing.
The World Bank had once come forward to fund the development of Amaravati. However, allegations of irregularities and violations in the project led to the withdrawal of this crucial financial lifeline. Despite consistent efforts by the coalition government to revive the funding, fresh obstacles have now emerged, casting further doubt on the project’s future.
Earlier, the World Bank in partnership with Asian Development Bank had mooted a gigantic ₹3,500 crore loan to build Amaravati. However, grave allegations had emerged about the then Chandrababu Naidu-led TDP government that it bypassed the provisions of Land Acquisition Act while acquiring lands. The controversial land pooling scheme allegedly deprived the farmers of their rightful ownership and livelihood. To make matters worse, Amaravati was located in a flood-prone zone near the Krishna River, which further fueled environmental and infrastructural concerns.
In response to these allegations, the World Bank initiated an investigation, conducting site inspections and consulting with affected farmers. Despite finding no concrete violations, the subsequent YSRCP administration chose to decline the financial assistance, effectively putting the loan proposal on hold.
In a recent twist, a fresh complaint has been lodged with the World Bank, reportedly by anonymous sources, reigniting controversies around Amaravati. This complaint, received on October 18, accuses the former TDP government of violating legal norms through its land pooling strategy, which allegedly led to farmers losing their primary sources of livelihood. It also highlights potential environmental, social, and economic risks tied to the project’s execution.
With the World Bank and ADB having expressed renewed interest in financing Amaravati, the timing of these allegations has sparked fresh debates. Questions loom over whether the World Bank will proceed with its earlier commitments or reconsider its stance, leaving the future of Amaravati’s capital development hanging in the balance.
