Will Amaravati get a new lease of life?

Naidu's renewed mandate and position as an important ally at the Centre give him the leverage to push for Amaravati's development

A city caught in a battle between two political giants—Reddy and Naidu—could finally rise from the ashes. Naidu, now an important ally at the Centre and poised to become the Chief Minister of Andhra Pradesh, holds the key to Amaravati’s future.

Chandrababu Naidu, the TDP chief, is determined to bring his vision of Amaravati to fruition, rekindling hopes for the city’s residents and investors alike.

Amaravati: A dream deferred

In the heart of Andhra Pradesh, where the Krishna River flows gently, lies the city of Amaravati. Once filled with promise, the city faced challenges due to political indecision and stalled progress. Now, under the leadership of Chandrababu Naidu, the city is gearing up for a fresh start. Amaravati was imagined as a futuristic metropolis and the state's new capital during N Chandrababu Naidu's term as Chief Minister (2014-2019). However, today, the reality is starkly different. The area planned to be the bustling business district lies barren, with barely a few offices or buildings, echoing the silence of stalled progress and unfulfilled promises.

Initial investments

In 2014, when Andhra Pradesh was divided, Naidu had big plans for Amaravati. It was envisioned as a world-class city sprawling over 217 square kilometres, integrating sustainable design features such as solar power and expansive green spaces. The renowned architecture firm Foster + Partners was tasked with designing the government complex to house the legislative assembly, high court, and secretariat buildings. The plan also included nine themed cities focused on finance, justice, health, and technology to elevate Amaravati's global standing.

Significant initial investments were made. The Andhra Pradesh government estimated that the total cost of developing Amaravati would be around ₹50,000 crore. Several countries, including Singapore and Japan, were brought in to provide technical and financial support. The Singaporean government played a key role in the master planning, while Japanese firms were engaged in building the infrastructure.

The farmers land

The land pooling scheme was a unique feature of Amaravati's development. Over 30,000 acres of land were pooled from 24,000 farmers under a promise of high returns and development benefits. These farmers, the backbone of Amaravati's development, were promised annual payments, residential plots, and a share in the city's prosperity. Initially, the scheme was seen as a win-win situation – the government got the land needed for development without significant upfront costs, and the farmers were set to benefit from the appreciation in land value and infrastructure development.

However, with the change in government and the subsequent halting of Amaravati's development, many farmers feel betrayed. The promised development has yet to materialise, and the land, supposed to make them prosperous, has left them in limbo. Protests and legal battles have ensued, with farmers demanding either the completion of the project or their land back.

On the ground in Amaravati, a spirit of cautious optimism prevails. The farmers, who had selflessly given up their fertile lands for the capital city project, are hopeful that Naidu's return will bring much-needed development and prosperity. These farmers, collectively contributing approximately 35,000 acres, were inspired by the promise of a thriving capital to transform their lives. The Amaravati Parirakshana Samithi, who led protests against the previous government’s policies, is now considering ending their agitation and is confident in Naidu's commitment.

Financial woes

The development of Amaravati came under financial scrutiny last September, with India's Comptroller and Auditor General (CAG) raising concerns about economic management. The CAG's report has highlighted issues such as cost overruns, delays in land acquisition payments, and discrepancies in the allocation of plots to farmers. By 2019, the state had already spent over ₹15,000 crore on the project, with little to show.

In addition, Andhra Pradesh has a massive debt of over ₹4 lakh crore. This substantial financial strain presents a significant challenge for any government attempting to revive Amaravati. The debt burden makes it difficult to allocate funds for new developments, and urgent attention is required to address the state's fiscal health. These financial difficulties further complicate the already challenging task of reviving Amaravati.

Naidu's prestige project

The Telugu Desam Party (TDP) and its leader, N Chandrababu Naidu, view Amaravati as more than just a city; it symbolises vision and progress. Naidu, known for his administrative acumen and development-oriented approach, envisioned Amaravati as a legacy project that would put Andhra Pradesh on the global map. His dream was to create a city that could rival the best in the world, attracting investments and talent from across the globe.

The TDP has been vocal about continuing and completing Amaravati's development. According to the TDP, abandoning Amaravati would mean wasting the significant investments already made and betraying the farmers and citizens who trust the project. For Naidu, reviving Amaravati is not just a political agenda but a personal and political matter of prestige.

In the recent elections, Naidu's TDP won significantly over the YSR Congress Party (YSRCP), delivering a massive blow to the incumbent government. This victory has reignited hopes for Amaravati's revival, with Naidu poised to become the Chief Minister again. His renewed mandate and position as an important ally at the Centre give him the leverage to push for Amaravati's development.

Surge in property prices

After the recent election, the TDP's victory has caused a significant increase in property prices in Amaravati, with a notable surge of 20 to 30 per cent. This surge demonstrates a renewed sense of confidence among investors. Additionally, real estate agents and local businesses are optimistic about the future, expecting a revival in construction and economic activities. Real estate experts anticipate further price increases, especially as Naidu plans to continue the development of Amaravati as the state capital.

Political drama

The story of Amaravati is closely tied to the political drama of Andhra Pradesh. The city's development became controversial after YS Jagan Mohan Reddy's YSRCP came to power in 2019. Reddy's government questioned Amaravati's feasibility and financial prudence and proposed a three-capital plan. This plan aimed to decentralise the administration, with Amaravati as the legislative capital, Visakhapatnam as the executive capital, and Kurnool as the judicial capital.

This move was seen as a direct challenge to Naidu's vision and sparked widespread protests, particularly from the farmers who had pooled their land. The political conflict over Amaravati became a focal point of the state's political landscape, with both sides accusing each other of corruption, mismanagement, and betrayal of public trust.

Current state of Amaravati

Currently, Amaravati remains to be determined. The cityscape is marked by partially constructed buildings, abandoned sites, and large stretches of empty land. The infrastructure crucial for supporting a thriving metropolis is yet to be completed. Government offices, intended to be the nerve centre of the state's administration, are still operating out of temporary accommodations. Promised high-speed rail links, green spaces, and innovative city features are nowhere to be seen.

Despite the challenging situation, there are signs of development. Some educational institutions and private sector projects have been established, bringing some activity to the region. However, these are just glimpses of what could have been a flourishing urban centre.

As one walks through the streets of Amaravati, the stark contrast between the grand vision and the current reality becomes evident. Unfinished buildings and empty roads illustrate suspended dreams and dashed hopes. Nevertheless, there is a palpable sense of anticipation. Chandrababu Naidu's return has reignited the belief that Amaravati can still evolve into the world-class city it was intended to be.

At Tadikonda, amidst a sea of fervent supporters, Naidu's words, “No power on earth can disturb Amaravati, which will continue to be the permanent capital of Andhra Pradesh,” resonated with renewed hope and excitement. His passionate address during last month’s 'Praja Galam' roadshow has rekindled the spirits of the region’s residents and farmers.

Road ahead for Naidu and Amaravati

In the wake of the recent electoral victory, Naidu faces the challenge of revitalising Amaravati while grappling with severe financial constraints. The state is burdened with a debt of over ₹4 lakh crore, posing significant hurdles to securing funds for large-scale projects. Naidu must utilise his political alliances at the Centre to obtain financial support and investments.

The revival of Amaravati will also necessitate rebuilding trust with the farmers and stakeholders. Ensuring timely payments, fulfilling promises made under the land pooling scheme, and demonstrating tangible progress are crucial. Naidu's administrative experience and development vision will be tested as he tackles these challenges.

Residents like Ponnam Prabhakar have invested their life savings in the promise of a prosperous future and now see a glimmer of hope. Rao remarks, "We relinquished our fertile lands for the state's development. With Naidu's return, we believe Amaravati will finally become the capital city we were assured of."

A new dawn?

The future of Amaravati hangs in the balance, caught between ambitious aspirations and harsh reality. Naidu's return to power brings hope to those who believe in the city's potential. However, the journey ahead is filled with challenges - financial constraints, political opposition, and the need to rebuild trust with the people.

Suppose Naidu can overcome these obstacles and deliver on his promises. In that case, Amaravati still has a chance to thrive, fulfilling its potential as a symbol of development and prosperity for Andhra Pradesh. The next few years will be crucial in deciding whether Amaravati becomes a success story or a cautionary tale of ambitious dreams unravelled by political discord.