The government plans to use the loan for construction of ports, airports, roads and water grid projects.
The Asian Infrastructure Investment Bank (AIIB) said it is ready to provide $3 billion to the Andhra Pradesh Government for development projects in the state, in a meeting of its representatives with Chief Minister YS Jagan Mohan Reddy on Thursday.
"The loan would be utilised for the construction of ports, airports, roads, water grid projects and for irrigation projects. The Chief Minister briefed the AIIB representatives about the welfare programmes being taken up by the government as enunciated in the Navaratnas," a government statement read.
Expressing satisfaction with the welfare programmes in the state, the AIIB representatives said that they were glad to hear about welfare programmes for the people instead of privatisation after 20 years. They said the proposal of the present loan would be in addition to the loan already given to the state.
Mr Reddy also told AIIB representatives that Andhra Pradesh is primarily an agricultural state, hence, "priority was being accorded to irrigation projects."
He added that the state government intends to construct ports in Bhavanapadu in Srikakulam district, Machilipatnam in Krishna district and Ramayapatnam in Prakasam district.
The bank officials said that they were ready to finance the construction of one port and added that they were ready to finance the construction of roads, water grid, airports and irrigation projects.
AIIB vice-president and chief investment officer DJ Pandian, director general (investment operations), UN Pang and principal social development specialist Somnath Basu from the AIIB met the Chief Minister.