Amaravati Project Back on Track with Renewed Momentum

30 Dec 2024 CW Team

Originally launched with great enthusiasm in October 2015, with Prime Minister Narendra Modi laying its foundation, Amaravati’s progress came to a halt during the tenure of the YSR Congress Party (YSRCP) government. Former Chief Minister Y.S. Jagan Mohan Reddy’s decision to pursue a three-capital model disrupted the project’s trajectory, leaving thousands of farmers who contributed land for the capital’s development in despair. Despite a 2022 High Court order mandating the continuation of Amaravati as the single capital, the project stagnated.

Since resuming office in June 2024, Naidu has prioritized the Amaravati project, working in close collaboration with the Central government. Significant financial commitments have been secured to advance the project, including an $800 million loan from the World Bank under the Amaravati Integrated Urban Development Program (AIUDP) and Rs 110 billion from HUDCO. The World Bank has highlighted the project’s potential to transform Amaravati into a climate-resilient growth centre that generates employment and improves living standards for residents, particularly vulnerable populations.

The state government, reaffirming Amaravati as the single capital, has committed to completing its development within three years. Tenders for capital works exceeding Rs 450 billion are set to be invited, with construction expected to begin by early 2025.

The master plan for Amaravati, designed by London-based Foster + Partners, remains largely unchanged and focuses on developing the core capital area spanning 217 sq km. As the project regains momentum, the state government is pulling out all stops to realize its ambitious vision of creating a world-class capital city.

With infrastructure works resuming and strong financial backing, Amaravati is poised to emerge as a central hub of growth and development in Andhra Pradesh, bringing new hope to its stakeholders.

The Amaravati Project, envisioned as the growth centre of Andhra Pradesh, is witnessing a revival after a five-year hiatus. Following the victory of the NDA alliance in the 2024 general elections and the return of N. Chandrababu Naidu as Chief Minister, the project has gained renewed vigor, marking a dramatic turnaround for the state’s capital development. Originally launched with great enthusiasm in October 2015, with Prime Minister Narendra Modi laying its foundation, Amaravati’s progress came to a halt during the tenure of the YSR Congress Party (YSRCP) government. Former Chief Minister Y.S. Jagan Mohan Reddy’s decision to pursue a three-capital model disrupted the project’s trajectory, leaving thousands of farmers who contributed land for the capital’s development in despair. Despite a 2022 High Court order mandating the continuation of Amaravati as the single capital, the project stagnated. Since resuming office in June 2024, Naidu has prioritized the Amaravati project, working in close collaboration with the Central government. Significant financial commitments have been secured to advance the project, including an $800 million loan from the World Bank under the Amaravati Integrated Urban Development Program (AIUDP) and Rs 110 billion from HUDCO. The World Bank has highlighted the project’s potential to transform Amaravati into a climate-resilient growth centre that generates employment and improves living standards for residents, particularly vulnerable populations. The state government, reaffirming Amaravati as the single capital, has committed to completing its development within three years. Tenders for capital works exceeding Rs 450 billion are set to be invited, with construction expected to begin by early 2025. The master plan for Amaravati, designed by London-based Foster + Partners, remains largely unchanged and focuses on developing the core capital area spanning 217 sq km. As the project regains momentum, the state government is pulling out all stops to realize its ambitious vision of creating a world-class capital city. With infrastructure works resuming and strong financial backing, Amaravati is poised to emerge as a central hub of growth and development in Andhra Pradesh, bringing new hope to its stakeholders.

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