World Bank approved loan for AP
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.