AIIB set to sanction loan of USD 3 billion to Andra Pradesh government

The Asian Infrastructure Investment Bank (AIIB) has agreed to give a loan of USD 3 billion to the government of Andhra Pradesh for development-related projects. The announcement was made public after a meeting between the authorities, including Chief Minister Jagan Mohan Reddy on Thursday. 

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A release by the Andhra Pradesh government read, "The loan would be utilised for the construction of ports, airports, roads, water grid projects and for irrigation projects. The Chief Minister detailed the AIIB representatives about the welfare programmes being taken up by the government as enunciated in the Navaratnas. The bank officials praised the initiatives taken by the government for taking up Nadu-Nedu programme for the development of government schools and hospitals." 

CM Reddy reportedly told the AIIB representatives that the funds were being prioritised for irrigation projects since Andhra Pradesh was primarily an agricultural state. The Chief Minister also mentioned that the state government has decided to construct ports in Bhavanapadu in Srikakulam district, Machilipatnam in Krishna district and Ramayapatnam in Prakasam district.

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CM Reddy also released a State focus paper for the year 2020-21 in Vijaywada. The focus paper was prepared by the National Bank for Agriculture and Rural Development (NABARD).

"Andhra Pradesh is primarily an agri-based economy as 62% of the people are dependent on agriculture. The State has vast opportunities in agriculture and allied sectors. Andhra Pradesh stands first in aqua and fisheries sectors. The economic slowdown, which the nation is experiencing, is likely to impact the primary sector, which is agriculture. At this juncture, it is necessary to focus on sectors that generate employment," he said at the State credit seminar.

(Image credits: twitter.com/AndhraPradeshCM)

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