Former Chief Minister N. Chandrababu Naidu said on Friday that the World Bank reneged on its commitment to lend $300 million for the Amaravati Sustainable Infrastructure and Institutional Development Project (ASIIDP) due to the filing of a slew of petitions on “frivolous grounds” against the construction of Amaravati allegedly at the behest of Chief Minister Y.S. Jagan Mohan Reddy. ‘Retrograde steps’He also expressed concern that the State faced the prospect of a rating downgrade by reputed agencies such as Fitch due to the “retrograde steps” being taken by the YSR Congress Party Government. Mr. Naidu made a mention of the World Bank pulling out of the ASIIDP, and the impact of a likely drop in rating on investments during a discussion on the demand for grants of the Energy Department in the Legislative Assembly. Review of PPAsThe government was taking “drastic steps” such as reviewing the power purchase agreements with a “suspicious outlook and vindictive attitude,” he asserted, and warned that it’s “over enthusiasm” would cause an irreparable loss to the State at a time when it was grappling with the fallout of bifurcation.

Source: The Hindu July 19, 2019 18:56 UTC