Amaravati (Andhra Pradesh), November 4, 2025 — The Capital Region Development Authority (CRDA) is set to raise another ₹32,500 crore in loans for the construction of the Amaravati capital city. The funds will be sourced under the Infrastructure Development Assistance scheme from a consortium that includes the World Bank, the Asian Development Bank (ADB), the AP Power Finance Corporation (APPFC), the National Bank for Financing Infrastructure and Development (NaBFID), and NABARD. An agreement for ₹1,500 crore has already been finalized with APPFC, and discussions with other institutions have concluded successfully. The World Bank and ADB have expressed strong support, agreeing to provide around ₹14,000 crore, while NaBFID will extend ₹10,000 crore and NABARD ₹7,000 crore. CRDA had earlier availed ₹26,000 crore in loans from the World Bank, ADB, and HUDCO combined.
The World Bank, which has been supportive of Amaravati’s development from the beginning, had initially planned to finance the project jointly with the Asian Infrastructure Investment Bank (AIIB) before the previous government halted the capital works in 2019. Following the new government’s proactive efforts, the World Bank and ADB have come forward with a fresh ₹15,000 crore package, including a ₹1,500 crore matching grant from the Central Government. A proposal seeking approval for an additional ₹14,000 crore loan (around $1.6 billion) will soon be sent to the Union Finance Ministry for clearance. Meanwhile, domestic financial institutions such as HUDCO, NaBFID, and NABARD have also shown keen interest, with HUDCO already releasing ₹2,750 crore out of its sanctioned ₹11,000 crore loan. With the upcoming funding, CRDA expects to accelerate work on 112 projects worth ₹91,639 crore, giving a major boost to Amaravati’s capital construction.
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