World Bank's decision to back out of extending funds to the Amaravati capital project led to a heated argument between the leaders of the ruling YSRCP and erstwhile TDP in the Andhra Pradesh Legislative Assembly on Monday.
State Finance Minister Buggana Rajendranath alleged that the World Bank withdrew the decision to extend the loan of Rs 3,500 crores because of the allegations of corruption levelled by several farmers and NGOs.
TDP Chief and former chief minister Chandrababu Naidu, however, refuted the allegations and accused YSRCP of creating obstacles in the project.
"The World Bank representatives visited Amaravati in 2017 and 2018. At that time the farmers and NGOs complained about the rampant corruption in Amaravati capital project. Later, World Bank representatives gave a report, but the then TDP government did not respond to it, following which it decided not to extend the loan," said Rajendranath.
The Minister claimed that even though the premier financial institution refused to grant fund to the capital project, it expressed readiness to give financial support to the 'Navaratnas', the flagship program of YSRCP government.
"The Amaravati project proposal was rejected by the World Bank board following its own Inspection Panel report, which indicated conflicts between the affected people and management," Rajendranath said.
Replying to this, Naidu said that he will only accept the contentions put forth by the minister if the farmers of Amaravati capital region agree with it.
"It is YSRCP which had created obstacles for capital construction. The loan was rejected due to the wrong complaints filed by them. They provoked the farmers and even wrote letters to the premier bank against the project," he added.
Naidu further rebutted the corruption in the project and said that it was fully transparent.
"It is only because of the YSRCP government that the central government stepped back from supporting the state," he alleged.
( With inputs from ANI )