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Andhra 'people's capital': What Amaravati will become after Rs 65,000 cr transformation

The vision for Amaravati is to create a "people's capital" that is not only administratively efficient but also environmentally sustainable and technologically advanced.

July 15, 2025 / 14:49 IST
Credit: @AmaravatiInfra/X

Andhra Pradesh has reignited its ambition to build a world-class capital city, Amaravati, with a substantial investment of Rs 65,000 crore. After a five-year halt from 2019 to 2024, the construction has resumed under AP Chief Minister N Chandrababu Naidu's leadership, aiming to transform Amaravati into an inclusive and sustainable urban city that attracts global talent and investment.

What is the project of Amravati capital city?

Situated along the banks of the Krishna River, Amaravati was designated as the new capital of AP following the state's bifurcation in 2014. The city's master plan, developed by the renowned UK-based firm Foster + Partners, outlined a development work over 217.23 square kilometres between Vijayawada and Guntur towns.

The vision for Amaravati is to create a "people's capital" that is not only administratively efficient but also environmentally sustainable and technologically advanced. The city aims to serve as an attraction point for skilled migrants, industries, professionals, and businesses from across the globe.

The project plan includes a Government City encompassing 1,093 hectares which will house government offices and residential zones, a Justice City spanning 1,339 hectares that will be the hub for judicial institutions, and Finance City covering 2,091 hectares with aims to boost economic activities with commercial and residential spaces.

Phased development and financial backing

The Amaravati Capital City Development Project is structured into multiple phases over 35 years. The initial phase focuses on critical infrastructure, supported by the World Bank's Amaravati Sustainable Capital City Development Project (ASCCDP). The central government has released over Rs 4,200 crore to the state for the development project, after receiving USD 205 million from the World Bank.

Additionally, the World Bank and the Asian Development Bank have committed a total of USD 1,600 million for the project's phase-I development. This substantial financial backing ensures that the project has the necessary resources to progress without financial hurdles.

Phase 1 of Amravati Master Plan

Phase 1 of the development project focuses on developing essential infrastructure, including housing, healthcare, education, sanitation, and transportation. As part of the housing initiative, 3,500 apartments and 200 bungalows are being built for government officials, alongside proposed housing for 5,000 families from economically weaker sections (EWS).

The master plan plans for healthcare plots in each of the 27 proposed neighbourhoods, along with a dedicated Health City in the capital to host major hospitals and allied ecosystems.

A Knowledge City is also being developed within Amaravati, with institutions like SRM University, Amrutha University, VIT University, and NID already operational, serving around 22,000 students. Esteemed institutions such as BITS, XLRI, Purdue University, Tokyo University, and Georgia Institute of Technology are in the pipeline for future establishment.

As many as thirteen decentralised sewage treatment plants are designated to serve the capital city. Apart from the source level treatment by the bulk MSW generators, an integrated solid waste management facility is being designed to cater to entire MSW management in the city.

Infrastructure and urban planning

Amaravati's urban planning draws inspiration from global cities Singapore, Tokyo and Amsterdam. The city is designed as a smart, technology-driven, and environmentally sustainable place. Key features include planned urban infrastructure, green spaces, efficient public transport systems, and eco-friendly initiatives.

The city's development is also characterised by the unique ’Land Pooling Scheme,’ where local farmers voluntarily contribute their land for the capital's construction, leading to a sense of ownership and community involvement.

Speaking on the recommencement of works at Amaravati, Nara Lokesh, Minister in the Andhra government, said, "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 with the necessary support as we restart work."

Government of India, and the government of Andhra Pradesh organisations, hospitals, banks, schools, and other private organisations are expected to start in a month or two and be established completely in the next 2-4 years.

Moneycontrol City Desk
first published: Apr 14, 2025 07:30 am

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