Andhra Clears Rs 90 Billion Plan To Revive Amaravati City Works

12 Nov 2025 CW Team

A central decision under the plan is the administrative approval to invite tenders worth Rs 18.63 billion on a lump-sum contract basis for the construction of roads, drainage systems, water supply, sewerage, utility ducts, ICT infrastructure, recycled water pipelines, sewage treatment plants (STPs), and avenue plantations. The works will cover the land pooling zones of Krishnayyapalem, Venkatayapalem, Penumaka, and Undavalli, under the Andhra Pradesh Capital Region Development Authority (APCRDA). The project includes a two-year defects liability period.

To further accelerate development, the Cabinet sanctioned Rs 75 billion in borrowing from the National Bank for Financing Infrastructure and Development (NaBFID) for work in land pooling zones 4, 9, and 12. An additional Rs 15 billion will be raised through the Andhra Pradesh Power Finance Corporation Limited (APPFCL) to expedite critical capital projects.

In a separate decision, the Cabinet approved the transfer of 1.60 acres of government land in Machavaram, Krishna district, to the Telugu Desam Party (TDP) for the construction of a district office. The land will be leased for 33 years at a nominal rent.

The government also amended the land allotment rules, extending political party office leases from 33 years to 66 years, with a provision for renewal up to 99 years.

Additionally, the Cabinet granted clemency to three life convicts — Madhiri Suvarna Raju, Katikireddy Nageswara Rao, and Vadde Srinivasulu — who are eligible for special relief under G.O.Ms.No.71 (Home – Paroles & HRC Department), dated 17 April 2025. Officials stated that the move aims to support the rehabilitation and reintegration of long-term prisoners into society.

The decisions are expected to revitalise Amaravati’s stalled infrastructure, signalling renewed government commitment to transforming the capital into a modern, sustainable urban hub.

The Andhra Pradesh Cabinet has approved a Rs 90 billion infrastructure expansion plan for Amaravati Capital City, marking a major step towards reviving long-pending development projects through key financial sanctions and policy reforms. A central decision under the plan is the administrative approval to invite tenders worth Rs 18.63 billion on a lump-sum contract basis for the construction of roads, drainage systems, water supply, sewerage, utility ducts, ICT infrastructure, recycled water pipelines, sewage treatment plants (STPs), and avenue plantations. The works will cover the land pooling zones of Krishnayyapalem, Venkatayapalem, Penumaka, and Undavalli, under the Andhra Pradesh Capital Region Development Authority (APCRDA). The project includes a two-year defects liability period. To further accelerate development, the Cabinet sanctioned Rs 75 billion in borrowing from the National Bank for Financing Infrastructure and Development (NaBFID) for work in land pooling zones 4, 9, and 12. An additional Rs 15 billion will be raised through the Andhra Pradesh Power Finance Corporation Limited (APPFCL) to expedite critical capital projects. In a separate decision, the Cabinet approved the transfer of 1.60 acres of government land in Machavaram, Krishna district, to the Telugu Desam Party (TDP) for the construction of a district office. The land will be leased for 33 years at a nominal rent. The government also amended the land allotment rules, extending political party office leases from 33 years to 66 years, with a provision for renewal up to 99 years. Additionally, the Cabinet granted clemency to three life convicts — Madhiri Suvarna Raju, Katikireddy Nageswara Rao, and Vadde Srinivasulu — who are eligible for special relief under G.O.Ms.No.71 (Home – Paroles & HRC Department), dated 17 April 2025. Officials stated that the move aims to support the rehabilitation and reintegration of long-term prisoners into society. The decisions are expected to revitalise Amaravati’s stalled infrastructure, signalling renewed government commitment to transforming the capital into a modern, sustainable urban hub.

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