Amaravati: time for swift, decisive action

Referring to the timelines of the proposed capital city Amaravati, Andhra Pradesh Chief Minister N. Chandrababu Naidu once remarked, “Rome was not built in a day.” When he first conceptualised Amaravati in 2015, he envisioned a world-class capital comprising nine cities along the banks of the Krishna River. However, the journey has been turbulent, and significant challenges remain.

April 2026 marked a turning point, bringing long-awaited clarity. Following a resolution by the State Assembly, the Andhra Pradesh Reorganisation (Amendment) Bill was passed by both Houses of Parliament, granting Amaravati legal status as the State’s sole capital, effective June 2, 2024. 

Mr. Naidu described the development as a ‘historic moment,’ stating that it ended the ambiguity created during the previous government led by Y. S. Jagan Mohan Reddy and the YSR Congress party. While the NDA supported the Bill unanimously, the YSR Congress opposed it, raising concerns and staging a walkout in Parliament.

A decade earlier, Amaravati was launched with great ambition, envisioned as a city surpassing Hyderabad, which Mr. Naidu helped transform into a major IT and infrastructure hub. Around 34,000 acres of land were pooled from over 30,000 farmers across 29 villages near Vijayawada, Guntur, Tenali, and Mangalagiri. Under a unique land pooling scheme, farmers were promised developed residential and commercial plots along with annual payments for 10 years. The vision was to create a self-sustaining, modern capital capable of generating economic opportunities and fostering entrepreneurship.

Despite favourable conditions and a strong mandate, progress slowed considerably, particularly in the latter half of Mr. Naidu’s 2014-19 term. Delays in planning and execution hindered development and contributed to political setbacks in the 2019 elections. Although Mr. Naidu initiated the project with support from international consultants, including firms from Singapore, the U.K., and Germany, the capital remained incomplete by the end of his tenure.

The subsequent YSR Congress government halted Amaravati’s development and proposed a three-capital model: Visakhapatnam as the executive capital, Amaravati as the legislative capital, and Kurnool as the judicial capital. This plan faced legal and administrative challenges and ultimately failed to materialise. 

The issue remained central in the 2024 elections, where the Telugu Desam Party-led NDA secured a decisive victory, winning 164 out of 175 seats, while the YSR Congress was reduced to 11 seats. Mr. Naidu’s development-focused agenda resonated more strongly with voters than the Opposition’s welfare-driven approach. 

There are renewed efforts to attract investment, and major global companies such as Google, Infosys, Tata Consultancy Services, and ArcelorMittal/Nippon Steel have launched projects in Andhra Pradesh. Several firms that had previously withdrawn during the earlier regime have begun to return.

With political clarity restored, the State government is now working to revive Amaravati. Infrastructure development worth approximately ₹60,000 crore is under way, including major road networks, the High Court, Secretariat, and residential facilities for officials. Financial support has been secured from institutions like HUDCO, the Asian Infrastructure Investment Bank, and the World Bank, enabling the government to accelerate progress.

As part of the broader vision, Mr. Naidu envisions Amaravati, with a $2.4 trillion economy by 2047, serving as a growth engine for the State’s economy.

EDITORIAL | ​Balance is key: On the Andhra Pradesh Reorganisation (Amendment) Bill and Amaravati

Execution challenge

However, given the scale of Amaravati and the limited construction window within the current term, along with changing global dynamics, strained State finances, and land pooling issues, the government faces the challenge of delivering tangible results quickly. Priorities include developing residential areas, boosting economic activity, expanding social infrastructure, and relocating government staff to the capital. At the same time, ensuring balanced regional development across the State remains essential.

While Amaravati’s legal status has been settled, its transformation into a functional capital will depend on sustained political will, efficient and swift execution, and inclusive growth.

Published – April 06, 2026 12:32 am IST