Hyderabad: The central government has said that the state government could take financial assistance from the World Bank for the construction of AP’s new capital city of Amaravati under certain conditions.
The Union ministry of finance’s department of economic affairs said that the state government should ensure that norms and standards as well as zoning regulations were based on guidelines brought out by the ministry of urban development.
The state government wrote to the department of economic affairs on January 16, 2016, requesting its approval for its appeal for the World Bank’s help and to the Union ministry of urban development on February 19, 2016 on the same subject.
Ministry of urban development under secretary Naresh Kumar wrote a letter to the AP government on Thursday, saying it had no objection on the matter.
He said that the state government should ensure the implementation of Building Bye Laws to be prepared, based on Model Building Bye Laws, 2016.
Mr Kumar said that all efforts had to be made to encourage leveraging resources through land monetization to reduce the burden on the budgetary support of the state government for the development of the capital city.
The overall development of the city should also be taken into consideration, as also the objectives of the smart city and reform agenda under the AMRUT mission.
Mr Kumar said that the department had suggested that other new avenues for project funding had also opened up, such as the National Investment and Infrastructure Fund (NIIF), New Development Bank (NDB) and Asian Infrastructure Investment Bank (AIIB) which may also be considered as suitable by the department of economic affairs for the project’s funding. He said that these issues had been approved by the secretary of the urban development department.
