New Delhi: The World Bank’s Board of Executive Directors has approved an $800 million loan to support the Amaravati Integrated Urban Development Program, a transformative initiative aimed at establishing Andhra Pradesh’s Amaravati, as a well-managed, climate-resilient urban growth centre. The program seeks to generate jobs, improve living conditions, and benefit vulnerable populations in the region.
“With its urban population expected to double to 950 million by 2050, India aims to build sustainable and livable cities as growth hubs, and Amaravati offers an exciting opportunity to model this urban transformation”: stated Auguste Tano Kouame, World Bank’s Country Director for India.
He also emphasized the World Bank’s role in bringing global expertise to design city institutions and infrastructure that create economic opportunities for all, including women, youth, and vulnerable groups.
Vision for Amaravati
Currently home to about 100,000 residents, Amaravati is projected to experience rapid population growth over the next decade, with a master plan prepared to accommodate 3.5 million people by 2050 across a 217 sq km area. The World Bank and the Asian Development Bank support this first development phase.
The program will establish a city management structure prioritising citizen engagement in planning and development. It also aims to mobilize over $600 million in private sector investments to ensure the city’s financial sustainability and create economic opportunities.
“Catalyzing investments will be key to making the city work for its residents,” said Balakrishna Menon and Gerald Ollivier, World Bank task team leaders for the Program. “The Amaravati Masterplan reserves 22% of the residential area for affordable housing, and the Program will support this, including through setting up a Fund that can pool in private sector resources.”
Jobs, Skills, and Inclusivity
The program is expected to generate 50,000 jobs over the next five years in sectors like construction, agro-processing, clean manufacturing, and services. Job-focused skills training will directly benefit 17,000 residents, including 10,000 women, improving access to better and higher-paid employment opportunities.
The initiative will also integrate smart, green technologies to develop flood-mitigation systems, road grids, public transport, and water/wastewater management infrastructure. Neighbourhood-level community facilities, public spaces, and affordable housing will be designed to enhance social inclusivity and climate resilience.
Climate-Resilient and Sustainable Design
To address climate challenges, the program will incorporate low-carbon and nature-based solutions, alongside disaster management measures. These features aim to make Amaravati a model of sustainable urban development.
The $800 million loan, requested by the Government of India, includes a 29-year maturity period with a six-year grace period. This funding underscores the commitment to building Amaravati as a capital city and an economic hub for Andhra Pradesh.
