Former Andhra Pradesh Chief Minister Chandrababu Naidu's Amaravati Dream Capital project suffered a setback on Thursday as the World Bank has now decided not to fund $300 million for the purpose. The status of the project is showing 'Dropped' on the World Bank website. On the loan sought by the former CM, the bank was considering lending $300 million for infrastructure development in the capital under the Amaravati Sustainable Capital City Development Project.

The Capital Region Farmers' Federation, and the Narmada Bachao Andolan, the Working Group on International Financial Institutions (WGonIFIs), the Human Rights Forum, Andhra Pradesh, the National Alliance of People's Movements, and several NGOs for The Centre for Financial Responsibility, the Telugu Desam Party, have been launched by the Government of India. They opposed the decision. The TDP had planned to build the capital by acquiring land from farmers.

Based on a number of petitions filed by NGOs, the World Bank had sought an inspection report on whether the then Andhra Pradesh Government had honored all the commitments and whether the construction of the capital city had followed all the rules and regulations. The inspection report was submitted in January this year. The inspection was carried out at about 50 points but the report has not been made public.

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