Chandrababu Naidu’s Rs 65,000 crore dream: Inside Amaravati’s world-class makeover plan

In 2014, Amaravati was announced as the new capital of Andhra Pradesh after the state was divided.

Andhra Pradesh Chief Minister N Chandrababu Naidu is again focusing on the Amaravati capital city project. He plans to expand it by acquiring 30,000 to 40,000 acres of land. This expansion aims to make Amaravati a well-known urban centre that attracts international attention and investment.

In 2014, Amaravati was announced as the new capital of Andhra Pradesh after the state was divided. The YSR Congress Party (YSRCP) government later stopped the project and chose a plan with three capitals instead. However, after winning the election again in June 2024, Naidu restarted the Amaravati project. He wants to develop the city into well-known cities like Amsterdam, Singapore, and Tokyo.

The ambitious project now has a budget of over Rs 65,000 crore. To secure the funding needed, Naidu’s administration has successfully obtained Rs 15,000 crore from the Central Government, US$800 million each from the World Bank and Asian Development Bank, and Rs 11,000 crore from HUDCO. They are also in talks with Germany’s KfW Bank for another Rs 5,000 crore funding.

"Political analyst Rajesh K. noted that Naidu wants Amaravati to be a key destination for international investors and skilled workers. His plan combines strong urban design with bold economic goals."

The main feature of this updated project is the new international airport. It will help decrease traffic at the nearby Vijayawada airport and improve Amaravati's travel connections. Major infrastructure improvements will also be made, such as outer ring roads, expressways, and main roads that link Amaravati to Hyderabad, Visakhapatnam, and Machilipatnam.

The Andhra Pradesh Capital Region Development Authority (APCRDA) has invited Prime Minister Narendra Modi to officially open the resumed construction activities. His expected presence shows strong support from the central government, which is important for keeping the project moving forward.

Minister for Municipal Administration and Urban Development P. Narayana announced that 59 tenders worth Rs 37,702 crore have been approved. This shows the government's quick action to speed up the development of Amaravati. These tenders will help build important infrastructure, including roads, bridges, flood management systems, water supply networks, and large parks and green spaces.

The Amaravati master plan covers a core area of 217 square kilometres, including a 16.9 square kilometre zone for initial development. This area will feature major government buildings like the Secretariat, Legislative Assembly, and High Court and housing for government officials. Nine specialized theme cities will be created outside this central area, focusing on the finance, tourism, electronics, healthcare, sports, media, and education sectors.

Collaboration with international partners is important for Naidu’s vision. The Andhra Pradesh Capital Region Development Authority (APCRDA) is reconnecting with the Singapore government, which helped design the original master plan for Amaravati and supports the city's global recognition. Experts from the Netherlands, including those from Arcadis, are also working on sustainable features like reservoirs, water bodies, and green spaces.

Education is a key part of Amaravati’s growth. Well-known institutions like VIT, SRM, and Amrita Universities already serve around 22,000 students. Additional prestigious universities, such as BITS Pilani, XLRI, Purdue University, Tokyo University, and Georgia Institute of Technology, plan to set up campuses soon. This educational expansion aims to attract talent worldwide, creating a lively intellectual and professional community.

The project's first phase involves building necessary facilities, including 3,500 apartments, 200 bungalows for government officials and 5,000 houses for low-income people. Each neighbourhood will have healthcare services, schools, a water supply, sewage treatment plants, and waste management systems.

Rajesh K pointed out, "Naidu’s vision for Amaravati is quickly turning from a political idea into a real city.” He believes the city could set new urban standards in India.

Key government and institutional buildings are expected to be finished within two to three years. Amaravati aims to become a model capital city—modern, inclusive, and sustainable—that fully achieves Naidu’s long-term dream for the future of Andhra Pradesh.