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Strategically located between Vijayawada and Guntur, the sprawling 34,000-acre project, initially halted by the previous Jagan Reddy govt, is set for a significant relaunch.
The developmental works are broadly categorised into housing and building, infrastructure development in the Land Pooling Scheme (LPS) areas. (Image: News18)
Amaravati, the ambitious capital city of Andhra Pradesh, presents a scene of wide roads, incomplete buildings, and piles of raw construction materials, all set amidst uncultivated farmland, for the construction of a mega city. Strategically located between Vijayawada and Guntur, the sprawling 34,000-acre project, initially halted by the previous Jagan Mohan Reddy administration, is now set for a significant relaunch.
The foundation stone for this envisioned metropolis was laid in October 2015, marking the start of creating a world-class urban centre. The Master Plan for Amaravati, crafted with guidance from the Government of Singapore and inspired by global best practices, aims to accommodate a population of 3.5 million by 2050.
The developmental works are broadly categorised into housing and building, infrastructure development in the Land Pooling Scheme (LPS) areas, and crucial trunk and flood management works. As of 2024, the estimated budget for Amaravati’s comprehensive development stood at approximately Rs 64,910 crore, bolstered by a Rs 15,000 crore commitment from the Indian government and substantial financial support from international institutions, including $800 million each from the World Bank and the Asian Development Bank, and an agreement with HUDCO for a loan of Rs 11,000 crore.
Amaravati is all set for a relaunch today. The @ncbn government says funds and land are not an issue, and they will build a new capital in 3 years. If the plan on paper is executed well on the ground, Andhra Pradesh will have a future-ready city. pic.twitter.com/ftaoD0K8xL— Harish Upadhya (@harishupadhya) May 2, 2025
In an interview with CNN-NEWS18, Andhra Pradesh’s Minister for Municipal Administration and Urban Development, Ponguru Narayana, discussed the project’s history, the challenges faced, and the current government’s determined plan for revival.
Reflecting on the initial phase of the project, Minister Narayana stated that the Amaravati Capital City development began in 2014-2019. During that time, tenders were called for Rs 41,000 crores for major trunk roads, layout roads, apartments, bungalows, and iconic buildings such as the assembly, high court, and administrative towers.
Addressing the disruption caused by the subsequent Jagan Mohan Reddy administration, he explained that although Rs 5,000 crore had been spent for the contractors, the previous government halted the project and introduced the concept of three capitals. They neither continued the work nor settled the payments, leading to numerous legal issues, he said.
The current government, under Chandhrababu Naidu’s leadership, took nearly 11 months to overcome these obstacles, he stated. Minister Narayana detailed the measures taken, including forming a technical committee of chief engineers, assessing the building strength through IIT Chennai and IIT Hyderabad, and eventually calling for tenders worth Rs 50,000 crore.
Highlighting Prime Minister Narendra Modi’s renewed involvement, he mentioned the invitation extended to the Prime Minister to restart the works, which was accepted.
Providing a timeline for the completion of key residential infrastructure, the Minister affirmed that the 4,000 houses for officials would be completed within one and a half years, with 80-85 per cent of the work already done. The main trunk roads, totaling 350 kilometre, would be completed within two years, and the layout roads within two and a half years, he said.
Regarding the iconic structures, Minister Narayana stated that the five administrative towers, the assembly building, and the high court would be completed within three years. The administrative towers include one 50-floor tower and four 40-floor towers, while the assembly building and high court have specific plans for their respective heights and dimensions.
Elaborating on the innovative land pooling system, he explained that the call for land pooling in 2015 resulted in 34,000 acres being contributed by landlords without litigation. This land was allocated for various uses, including returnable plots to agricultural people, blue and green spaces, roads, and parks. Currently, 4,000 acres of developed land are available for further development.
Highlighting the self-sustaining financial model for the capital city, Minister Narayana asserted that the developed land costs range from Rs 20 crore to Rs 30 crore per acre. The plan involves reserving 4,000 acres of land, taking loans for initial development, and later selling the land at increased prices to repay the loans, ensuring no taxpayer money is spent on the project.
Discussing the initial efforts to attract institutions and industries, he mentioned that 1,500 acres were reserved for national-level organisations and institutions. Despite setbacks from the previous government’s actions, the current administration has reallotted 800 acres and set a target for these organisations to start their work within four months.
Amaravati’s development, under the new government’s leadership, is set to transform the region into a self-sustaining, world-class urban centre, with strategic planning and significant financial backing paving the way for its future, the Minister said.
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