Chief Minister YS Jagan Mohan Reddy met a delegation of the New Development bank-led by vice-president N Jong along with project head Ninad Rajpurkar at his Tadepalli residence.
The loan, which has to be repaid in a span of 32 years, would be approved soon, CMO officials said. The CMO officials confirmed that the loan is not meant for Amaravati capital projects and will most likely be used for building schools and colleges, tribal universities, community health centres and hospitals in remote areas as well as improving existing infrastructure.
The CM has sought more assistance from the NDB to enable the state to complete its prestigious projects including infrastructure development, building of schools, hospitals and supply of clean drinking water.
The NDB was set up in 2015 by BRICS nations. The Shanghai-based Bank has lent over Rs 75,000 crore for various projects all over the world and Rs 25,000 crores in India alone.
On July 16, just a month after the YSRCP formed the government, the World Bank and Asian Infrastructure Investment Bank (AIIB) which were supposed to loan $ 715 million to AP capital development and other purposes, withdrew without citing any reason.
In February 2018, the NDB had approached the then Telugu Desam Party-government to fund developmental projects in the state. The NDB is funding two crucial road projects–AP Mandal Connectivity and Rural Connectivity Improvement Project and AP Roads and Bridges Construction Project (APRBRP). The cost of both projects is Rs 6,400 crores.