China-led development bank joins World Bank in pulling funds for Andhra Pradesh’s new capital

The construction of the city, known as Amaravati, is the brainchild of the state’s former chief minister, N. Chandrababu Naidu, who lost power in elections in May.

The Beijing-backed Asian Infrastructure Investment Bank has dropped plans to finance a new capital for Andhra Pradesh, after the World Bank pulled its support on Friday.

A computer-generated representative photo of Andhra Pradesh’s “world class” capital Amaravati presents a spectacular first look, but World Bank has dropped the proposal. ((File Photo provided by AP government))

The construction of the city, known as Amaravati, is the brainchild of the state’s former chief minister, N. Chandrababu Naidu, who lost power in elections in May.

“AIIB is no longer considering the Amaravati Sustainable Infrastructure and Institutional Development Project for funding,” spokeswoman Laurel Ostfield told Reuters in an emailed statement.