AP kicks off Rs 65,000-cr Amaravati dream project

Vijayawada: Work has officially resumed on the ambitious Rs 65,000-crore Amaravati city project — the proposed capital of Andhra Pradesh on the banks of the Krishna River — envisioned as a "people's capital" that will attract skilled migrants, industries, professionals, and global businesses.

After a five-year hiatus between 2019 and 2024, construction has recommenced with renewed vigor, aiming to build a world-class urban hub inspired by cities like Amsterdam, Singapore, and Tokyo. Officials describe Amaravati as a modern, inclusive, and vibrant city that aspires to become a magnet for global talent and investment.

Prime Minister Narendra Modi has been invited to lay the foundation stone for the restarted project. The state government is currently awaiting confirmation from the Prime Minister’s Office (PMO), officials said.

The vision for Amaravati includes transforming it into a major economic hub for the region. By 2050, the city is projected to generate a GDP of USD 35 billion, accommodate a population of 3.5 million, and create 1.5 million jobs. As of 2024, the estimated cost for developmental works stood at Rs 64,910 crore, with Phase 1 scheduled for completion over the next three years.

The Government of India has committed Rs 15,000 crore in financial assistance and has facilitated support from international financial institutions.

The World Bank and the Asian Development Bank have each agreed to provide funding of USD 800 mil lion. Additionally, HUDCO has signed an agreement to extend a loan of Rs 11,000 crore, and discussions are ongoing with KfW for a potential c5,000 crore loan.

Speaking on the recommencement of construction, Minister Nara Lokesh stated, "We are truly delighted that Amaravati's plans are back on track. We are confident of building a remarkable, intelligent, and sustainable city that will be a source of pride for the Telugu community worldwide." In a move to expand the capital region, the state government is reportedly planning to acquire an additional 30,000 acres of land from villages surrounding the core capital area. Chief Minister N Chandrababu Naidu is keen on developing Amaravati to match global standards and has emphasized the importance of building supporting infrastructure. Plans are also underway to develop an international airport in Amaravati. The Andhra Pradesh Civil Aviation Corporation is preparing a feasibility report, which will be submitted to the central government for approval. Furthermore, the government is planning an outer ring road to improve connectivity around the capital region.

CM Naidu has repeatedly stressed the importance of attracting both national and international institutions to Amaravati to drive economic growth. In line with this vision, the state government has directed the Capital Region Development Authority (CRDA) to initiate steps for acquiring the additional land necessary for the city's expansion.