In what could be seen a major relief to the cash-strapped state of
Andhra Pradesh, sources say the World Bank has agreed for extending
about Rs 6,800 crore to the state for development of infrastructure in
and around the capital region.
The chief minister's office has received this communication over the loan approval from World Bank on Friday. There were several queries posed by Union finance ministry and World Bank officials regarding disbursal of this massive loan.
Chief
minister Chandrababu Naidu has interacted with World Bank officials in
this regard and explained the state government's plans for speeding up
the construction of a new capital city. He also reportedly convinced the
Union finance ministry that the loan won’t affect the fiscal
responsibility and budgetary management (FRBM) rules.
The
Union finance ministry has also cleared the proposal and now World Bank
approved the loan. The Rs 6,800 crore loan is seen as the second
biggest loan which was extended to AP by the bank. World Bank extended
one billion dollars loan to AP for power reforms in the year 1998.
