Amaravati Revival: Andhra Pradesh’s Capital Project Restarts with Major Investment

A Fresh Start for Amaravati

After a six-year pause, Amaravati-the planned capital city of Andhra Pradesh-is back in the spotlight. Once an ancient cultural hub, the city is now set for a massive revival with Prime Minister Narendra Modi laying the foundation stone for projects worth ₹58,000 crore. This marks a new chapter in the state’s real estate and infrastructure development.

The Original Vision

The idea to develop Amaravati as Andhra Pradesh’s capital emerged after the state’s bifurcation in 2014, when Hyderabad became part of Telangana. Led by then-Chief Minister N Chandrababu Naidu, the vision was to create a modern, sustainable capital between Vijayawada and Guntur. Over 33,000 acres of fertile farmland were pooled from nearly 30,000 farmers across 29 villages, with promises of future land plots and financial benefits.

The plan included building government offices, residential areas, and smart city infrastructure powered by renewable energy, aiming to make Amaravati a model city for the future.

Challenges and Delays

In 2019, the new government led by YS Jagan Mohan Reddy paused the project and proposed a three-capital plan, assigning Amaravati only the legislative capital role. This decision caused uncertainty and protests, especially from farmers who had given up their land.

For five years, progress stalled. Many projects were left incomplete, and international partnerships faded. A 2023 Comptroller and Auditor General (CAG) report highlighted financial irregularities and delays, with over ₹15,000 crore spent but little visible progress.

Renewed Momentum and Investment

With Chandrababu Naidu’s return to power in 2024 and support from the central government, Amaravati’s development has resumed. The government plans to invest ₹58,000 crore, including ₹49,000 crore for 74 key infrastructure projects such as the Legislative Assembly, Secretariat, High Court, and housing for officials.

The plan also includes expanding Amaravati into a megacity by acquiring up to 40,000 more acres and integrating nearby towns like Guntur, Vijayawada, Tadepalli, and Mangalagiri. Improved transport infrastructure, including new roads, railways, and an international airport, will support this growth.

Inclusive Growth for Farmers and Communities

The government has assured farmers and villagers who contributed land that development will be inclusive and beneficial to all 29 villages involved. Officials emphasize honoring past commitments and ensuring that the sacrifices made by landowners lead to long-term prosperity.

• This large-scale urban development will bring new housing
• public services
• economic opportunities
• making Amaravati a key real estate and infrastructure hub in Andhra Pradesh