The World Bank last week announced dropping its proposal to extend US $300 million loan to Andhra Pradesh for the infrastructure projects in Amaravati, the new capital city of the state.

The bank authorities had clarified that they had dropped the project following a letter from the Centre seeking to withdraw the loan proposal.

The YSRC leaders and state government officials have been attributing the cancellation of loan by the World Bank to Amaravati to the massive corruption indulged in by the previous TDP government.

They are saying that the Centre had withdrawn the loan request following the condition put forth by the World Bank that it would send an inspection panel to conduct an inquiry into the allegations levelled against the TDP government with regard to Amaravati project. It had nothing to do with the Jagan government.

However, the TDP leaders say the Centre could not take any unilateral decision to withdraw loan request without the involvement of the state government.

Senior TDP leader and former finance minister Yanamala Rama Krishnudu said the Centre can’t stop the World Bank funds to Amaravati.

It was done at the behest of the YSRC, as the letter was written by the Centre only last Tuesday.

He alleged that with the support of YSRC, some people had complained to the World Bank on the Amaravati project.

“On this, the World Bank has urged the center that they would inspect the project works. But the centre had raised objections as the State did not want the World Bank to conduct inspections,” he said.

“If Jagan Mohan Reddy had the commitment over Amaravati, then he would have convinced the center,” Yanamala argued.