Even as reports emerged that the Telugu Desam Party-led coalition government, headed by Chief Minister N Chandrababu Naidu, is considering acquiring an additional 30,000 acres of land in Amaravati under the pretext of capital city expansion, the news created ripples in political circles.
Meanwhile, a section of pro-TDP media swiftly sprang into action to divert public attention.
On Tuesday, a prominent Telugu daily published a report alleging that the YSR Congress Party (YSRCP) had made every effort to obstruct a soft loan of around â¹13,000 crore from the World Bank and the Asian Development Bank (ADB) intended for Amaravati's capital development.
According to the report, several individuals aligned with the YSRCP allegedly wrote letters to the World Bank, claiming that the Amaravati capital project was flawed and had severely harmed local farmers and the environment.
On December 17, 2024, the YSRCP reportedly sent a complaint via email to the Executive Director of the World Bank.
Emails were also sent under the names of various organizations and individuals, both from India and abroad, asserting that the project was disastrous.
The complaints alleged that the land pooling process had deprived farmers and agricultural laborers of their livelihoods, and that land acquisition was carried out through intimidation, leading to economic inequalities.
It was also claimed that the environment and biodiversity were under threat, and that farmland acquisition was endangering food security. These allegations were compiled into a formal complaint requesting a thorough investigation.
In response, the World Bank formed an Inspection Panel, which recently conducted a two-phase field visit to the capital region. During their stay in a hotel in Vijayawada, YSRCP supporters allegedly attempted to influence the panel.
However, the panel visited the sites and met with the complainants to understand their views.
After reviewing the situation, the panel concluded that the farmers had voluntarily contributed their lands for the capital project and found no significant violations. This report was submitted to the World Bank.
Satisfied with the panel’s findings, the World Bank dismissed the complaint and proceeded to sanction the loan for Amaravati. The World Bank team reportedly informed the government of its decision recently.
With all parameters deemed satisfactory, both the World Bank and the Asian Development Bank released the first installment of the loan for Amaravati. Including the Central Government’s contribution, a total of â¹4,285 crore has now been disbursed.