Construction has recommenced on the ₹65,000 crore Amaravati capital city project in Andhra Pradesh, marking a significant revival after a five-year pause. The initiative, envisioned as a “people’s capital,” aims to establish a modern, inclusive urban hub along the Krishna River, as reported by The Economic Times.
The Amaravati project, initially stalled between 2019 and 2024, has been revitalized under the leadership of Chief Minister N. Chandrababu Naidu. Inspired by global cities like Singapore, Amsterdam, and Tokyo, the master plan, developed by UK-based Foster and Partners, outlines a comprehensive development over 217.23 square kilometers between Vijayawada and Guntur.
The city is projected to create 1.5 million jobs, accommodate a population of 3.5 million, and achieve a GDP of USD 35 billion by 2050. Prime Minister Narendra Modi has been invited to the groundbreaking ceremony, though confirmation of his attendance is pending.
The project’s estimated budget stands at ₹64,910 crore. In 2024, the Government of India committed ₹15,000 crore in financial assistance and facilitated support from the World Bank and the Asian Development Bank, each providing USD 800 million. Additionally, HUDCO has agreed to extend a loan of ₹11,000 crore, with discussions ongoing with KfW for an additional ₹5,000 crore. Other funding avenues are being explored to ensure comprehensive financial backing.
Phase 1 of the project, set to be completed over the next three years, focuses on establishing core infrastructure, including housing, healthcare, education, sanitation, and transportation. The housing plan encompasses 3,500 apartments and 200 bungalows for government officers, along with provisions for 5,000 economically weaker section (EWS) families.
Each of the 27 planned neighborhoods will feature dedicated plots for healthcare facilities, and a centralized Health City is envisioned to host major hospitals and related ecosystems. The Knowledge City will house institutions like SRM University, Amrita University, VIT University, and the National Institute of Design, currently serving approximately 22,000 students. Future establishments include BITS Pilani, XLRI, Purdue University, Tokyo University, and the Georgia Institute of Technology.
Educational infrastructure will be supported by land allocations for primary schools through junior colleges in each neighborhood. Utilities will include access to treated water supply, a sewerage network, and reuse lines for treated wastewater. Thirteen decentralized sewage treatment plants are proposed to serve the entire city.
Solid waste management will be addressed through an integrated facility, with interim measures utilizing a Waste to Energy facility in Guntur. The transportation network will follow a gridiron pattern, featuring major arterial roads (60 meters), arterial and sub-arterial roads (50 meters), collector streets (25 meters), and local roads.
The master plan includes specialized zones:
- Government City: 1,093 hectares for government offices and residential areas.
- Justice City: 1,339 hectares dedicated to judicial institutions.
- Finance City: 2,091 hectares aimed at boosting economic activities with commercial and residential spaces.
Additional sectors encompass Education City, Health City, Sports City, Electronics City, Media City, and Tourism City, fostering a balanced urban ecosystem.
The project emphasizes sustainable development through green and blue infrastructure, including water bodies, reservoirs, and green spaces. International consultants, such as the Netherlands-based Arcadis, are involved in designing these features to enhance the city’s environmental and aesthetic appeal.
Prominent educational institutions like VIT, SRM, and Amrita Universities are already operational. BITS Pilani plans to commence operations in 2026, with XLRI also preparing to establish its campus. AIIMS at Mangalagiri is functional within the capital city.
The Andhra Pradesh Capital Region Development Authority (APCRDA) office is expected to be operational within six months. Government buildings, including housing for officials such as MLAs, MLCs, ministers, judges, and secretaries, are projected to be completed within 18 months. The Legislative Assembly and High Court buildings are slated for completion in 24 months, with the Secretariat anticipated to be ready in 36 months.
Various government and private organizations, including hospitals, banks, and schools, are expected to commence operations within the next two to four years.
The project has seen significant community participation, with farmers voluntarily offering approximately 32,637 acres of land through the Land Pooling Scheme (LPS), accounting for about 89% of the targeted 38,581 acres. This collaborative approach has been instrumental in assembling the land required for the new capital.
Nara Lokesh, a minister in the Andhra Pradesh government, expressed optimism about the project’s recommencement.
“We are truly delighted that the plans for Amaravati would be restarted in full flow. We are confident that we will be able to build a remarkable, intelligent, and sustainable city that will be a source of pride for the Telugu community worldwide. We are happy that the Government of India is providing us the necessary support as we restart work,” Lokesh said.
The Amaravati project stands as a testament to collaborative efforts between government bodies, international partners, and local communities, aiming to create a sustainable and inclusive capital for Andhra Pradesh.