Amaravati, the once-stalled dream capital of Andhra Pradesh, is witnessing a dramatic revival. In a significant development, the Centre has disbursed ₹4,285 crore as part of its commitment to the city’s phase-one infrastructure development, marking a strong political and financial push to get the project back on track.
The release follows the first tranche of $205 million from the World Bank, received earlier this year. The Asian Development Bank (ADB) is expected to match this amount soon. Together, the World Bank and ADB have pledged $1.6 billion (approximately ₹13,600 crore), while the Indian government will contribute ₹1,400 crore, completing the ₹15,000 crore required for Amaravati’s initial development phase.
A senior government official speaking to a media outlet confirmed that the funds released on April 1 include a 25% “mobilisation advance” from the total committed sum. “The next release will be subject to project progress and utilisation reports. We expect that stage to arrive in about six months, once the works pick up full pace,” the official is on the record as saying.
A Capital Frozen in Time Finds New Life
Proposed in 2014 in the wake of Andhra Pradesh’s bifurcation, Amaravati was envisioned as a modern, people-centric greenfield capital. In October 2015, Prime Minister Narendra Modi laid its foundation. The Andhra Pradesh government acquired 34,281 acres from nearly 30,000 farmers through a landmark land pooling model one of the largest voluntary land contributions for a civic project in Indian history.
However, political headwinds stalled the project. After the Telugu Desam Party (TDP) lost power in 2019, the incoming YSRCP government shelved Amaravati’s plans in favour of a three-capital model. This triggered prolonged legal battles and a 1,631-day-long protest by farmers. The Amaravati file gathered dust until now.
The Naidu Factor and a Second Wind
The political tide turned again in 2024. With Chandrababu Naidu back in power as Chief Minister and the TDP forming part of the NDA alliance, Amaravati was reinstated as Andhra Pradesh’s sole capital. Soon after, the Centre committed ₹15,000 crore to restart the capital works, an ask that Naidu had tabled as a condition for his party’s support at the national level.
Prime Minister Modi is expected to formally relaunch the capital construction later this month, flagging off projects worth over ₹1 lakh crore. As momentum builds, investor interest has spiked and real estate values across the capital region have surged.
A Vision of a Future-Ready City
Designed by British architectural firm Foster + Partners, Amaravati aims to be among the most sustainable and technologically advanced cities globally. The plan envisions a central administrative district wrapped in an expansive green belt drawing inspiration from Central Park in New York and Lutyens’ Delhi.
The city’s layout follows a strong urban grid with nine dedicated zones: governance, justice, finance, knowledge, health, sports, tourism, electronics, and media. Transportation will prioritize green mobility electric vehicles, water taxis, dedicated cycling lanes, and shaded pedestrian paths will shape everyday commutes. Public services are planned to follow the 5-10-15 rule: five minutes to emergency services, ten minutes to parks, and fifteen minutes to workplaces.
According to Anuj Puri, Chairman and CEO of ANAROCK Property Consultants, the total investment could rise to ₹40,000 crore, nearly double the original estimate, as plans expand to include a metro system, broader highways, and even an international airport.
Centre-State Synergy and Global Support
The revival of Amaravati underlines a rare synergy between state ambition and central backing. Finance Minister Nirmala Sitharaman, in her 2024 Union Budget speech, confirmed the central government’s intention to support Andhra’s capital-building efforts through multilateral development agencies.
“The ₹15,000 crore allocation for Amaravati is not just about infrastructure, it’s about confidence,” said Chief Minister Naidu, calling it a signal to global investors that Andhra Pradesh is once again open for business.
The Department of Economic Affairs acts as the borrower for both World Bank and ADB loans, while the Andhra Pradesh Capital Region Development Authority (APCRDA) remains the implementing agency. A recent delegation from the World Bank and ADB visited Amaravati and reportedly expressed satisfaction with the project’s direction and safeguards, including those addressing environmental and livelihood concerns.
Final Words
A decade after it was first envisioned, Amaravati is finally moving from blueprint to ground reality. Backed by renewed political will, international funding, and central support, Andhra Pradesh’s capital city may yet rise to become the model urban centre it once promised to be.
Also read: Stop-asking-for-tax-cuts-gadkaris-bold-message-to-india-inc
