According to sources the exit of World Bank from Amaravati project was a huge major setback for Andhra Pradesh and now the state received yet another jolt. Reports stated that china Investment Bank too pulled out of the project in a fresh development and this bank was supposed to invest $200 million.
Meanwhile the ruling YSRCP government is alleging that an insider trading happened in the Amaravati project and so one by one banks are walking out. Previously World Bank has suspected corruption in Amaravati project and so it proposed to send its experts team for an independent probe in the allegations. But the YSRCP government declined World Bank's probe and so the latter dropped their investment plan.
Perhaps china Investment bank was supposed to do a joint venture with World Bank in Amaravati. Apparently a week after World Bank pulling out, china Investment Bank too gave a second thought and finally they too quit the project. Presently TDP is worried that Amaravathi's brand image is getting damaged because of reputed banks dropping their investment plan. Earlier YSRCP government has hit back at TDP that just because of previous government's corruption, banks are not showing interest in putting their money.
