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India
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Jul 04, 2025
Centre to convert AP's ₹15,000 cr loan into grant
The central government is looking to convert a ₹15,000 crore loan—originally borrowed from the World Bank and Asian Development Bank for building Andhra Pradesh's new capital, Amaravati—into a grant.
This means the state won't have to pay back the money or worry about interest, giving it more financial breathing room for its ambitious city project.
TL;DR
How this move will help Andhra Pradesh's finances
This move could seriously help Andhra Pradesh's finances.
With huge debts and steep interest payments eating up 16% of its income next year, turning this loan into a grant frees up cash for other priorities—like finishing Amaravati's smart city plans.
It also signals stronger teamwork between the state and central governments, making big development projects more likely to actually happen.