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In 2025, Amaravati attracted ₹ 28,075 crore in investments
Real Estate

In 2025, Amaravati attracted ₹ 28,075 crore in investments

In an exclusive interview with Construction World, Kanna Babu, IAS, Commissioner, Andhra Pradesh Capital Region Development Authority (APCRDA), reveals how Amaravati is entering a decisive new phase of capital city development. With 36 MoUs worth ₹ 45,589 crore, a ₹ 58,000 crore tend...

In an exclusive interview with Construction World, Kanna Babu, IAS, Commissioner, Andhra Pradesh Capital Region Development Authority (APCRDA), reveals how Amaravati is entering a decisive new phase of capital city development. With 36 MoUs worth ₹ 45,589 crore, a ₹ 58,000 crore tender pipeline, and rising institutional investments, he explains the strategic execution, infrastructure rollout, and governance framework driving Amaravati’s emergence as a structured, investment-ready, and future-focused capital.APCRDA has recently secured major financial tie-ups, including loans from NABFID and NABARD. Could you outline how this funding is being distributed across core infrastructure and land pooling scheme (LPS) zones? We have adopted a structured financing strategy to ensure balanced development across trunk infrastructure and LPS zones. National Bank for Agriculture and Rural Development (NABARD) sanctioned ₹ 7,387.70 crore for nine major infrastructure projects, while National Bank for Financing Infrastructure and Development (NABFID) sanctioned ₹ 7,500 crore for three major LPS projects. These funds are being utilised for roads, underground utilities and core civic infrastructure so that development progresses simultaneously across the capital city. Amaravati has seen renewed interest from the public sector and institutional investors. How significant are such investments in rebuilding confidence, and what sectors are currently attracting the most interest? Investor confidence has strengthened significantly in the past year. During the CII Partnership Summit 2025, Amaravati secured 36 MoUs worth ₹ 45,589 crore with an expected employment potential of over 72,000 jobs. Additionally, 1,284.65 acres were allotted to 101 institutions, attracting ₹ 28,075.05 crore in investments and generating 36,000+ jobs, which clearly reflects growing institutional trust in Amaravati’s development. Key sectors include education, R&D, healthcare, hospitality, government organisations & banks. Power and utility infrastructure form the backbone of any city. How is Amaravati approaching this differently? Amaravati is being developed with a fully integrated, underground utility and power duct system. This comprehensive network accommodates water supply, sewage, stormwater drainage, treated water distribution, power, and ICT infrastructure—ensuring reliability, safety, and ease of long-term maintenance. Recognising utilities as a critical enabler of urban growth, power and utility infrastructure is being fast-tracked as a priority. Integrated utility planning, power connectivity, and external infrastructure works are progressing in parallel with institutional and urban development, rather than sequentially. By establishing robust and dependable utilities at an early stage, Amaravati enables faster execution of housing, commercial, and institutional projects, creating a strong foundation for the city’s sustainable and scalable growth. International development institutions such as the World Bank and ADB have engaged with Amaravati. What kind of support or expertise are these engagements bringing to the city’s development process? International institutions such as the World Bank and the Asian Development Bank are supporting Amaravati through technical missions that offer structured advisory input beyond conventional financing. Their engagement introduces global benchmarks into urban planning, infrastructure design, and governance. They advise on integrated land-use planning, transit-orientated development, sustainable water systems, flood mitigation, and resilient infrastructure. Support also extends to environmental and social safeguards, procurement, risk management, PPP frameworks, and long-term fiscal sustainability. Overall, these engagements strengthen institutional capacity, urban data systems, and climate-responsive planning, positioning Amaravati as a resilient, future-ready capital. Could you outline the current tenders underway in Amaravati and the scale of projects presently being bid out in this phase? The current phase of tendering in Amaravati comprises 95 projects with a total estimated value of around ₹58,000 crore, reflecting a major scale-up in capital city development activities. This phase is heavily infrastructure-led, with 43 tenders for trunk infrastructure, 24 tenders for LPS, 21 tenders for housing & office buildings & 5 tenders for flood mitigation works. The scale and spread of these projects underline a strong emphasis on foundational infrastructure alongside key built assets in Amaravati’s current development phase. Overall, the pipeline reflects a structured rollout focused on governance infrastructure, resilient urban systems, and enhanced regional connectivity.

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