Work has commenced on the Rs 65,000 crore Amaravati city project, the new capital of Andhra Pradesh on the banks of the River Krishna, with the aim of building a ‘people’s capital’ that attracts skilled migrants, industries, professionals, and businesses from across the globe.
After a five-year lull between 2019 and 2024, the Andhra Pradesh government, under Chief Minister N. Chandrababu Naidu, has revived the Amaravati project since coming to power last year.
Work has restarted on developing a world-class urban hub inspired by global cities such as Amsterdam, Singapore, and Tokyo, a city that is not only vibrant, diverse, inclusive, and modern, but also acts as a magnet for talent and investment from around the world, officials said.
Prime Minister Narendra Modi has been invited to attend the groundbreaking ceremony of the city, they added. However, it was not immediately known whether the Prime Minister has accepted the invitation or when the ceremony will take place.
Amaravati was designated as the new capital of Andhra Pradesh following the state’s bifurcation in 2014. The Amaravati Master Plan, crafted by the renowned UK-based firm Foster + Partners, envisions a comprehensive development over 217.23 square kilometers between Vijayawada and Guntur.
The city, located on the banks of the Krishna River, is envisioned as an economic hub for the region and is expected to create 1.5 million jobs, house a population of 3.5 million, and generate a GDP of USD 35 billion by 2050.
The estimated budget for Amaravati’s developmental works, as of 2024, was approximately Rs 64,910 crore. Phase 1 of the project is expected to be completed over the next three years, officials said.
Of the total project cost, the Government of India committed Rs 15,000 crore in financial assistance in 2024 and facilitated support from the World Bank and the Asian Development Bank, each pledging USD 800 million.
HUDCO has signed an agreement to extend a loan of Rs 11,000 crore, while discussions are ongoing with KfW for an additional Rs 5,000 crore. Other potential sources of funding are also being explored.
The Andhra Pradesh Capital Region Development Authority (APCRDA) is designing large-scale branding programs to attract anchor investors and private sector participation. Public-private partnership (PPP) projects are being promoted, with a special purpose vehicle (SPV) envisioned to meet viability gap funding.
Speaking on the recommencement of works, Nara Lokesh, Minister in the Andhra Pradesh government, said, “We are truly delighted that the plans for Amaravati are being restarted in full swing. We are confident that we will 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 the necessary support.”
Phase 1 of the project envisions the development of basic infrastructure including housing, healthcare, education, sanitation, and transportation.
Under the housing plan, 3,500 apartments and 200 bungalows for government officers are under construction, while housing for 5,000 economically weaker section (EWS) families is also planned. The master plan designates plots in each of the 27 neighborhoods/townships for healthcare facilities, and a dedicated Health City is envisioned to host major hospitals and medical ecosystems.
A dedicated Knowledge City is also planned within Amaravati. So far, SRM University, Amrita University, VIT University, and NID are operational, with about 22,000 students enrolled. Institutions such as BITS Pilani, XLRI, Purdue University, Tokyo University, and the Georgia Institute of Technology are in the pipeline. Land parcels for primary to junior college-level educational institutions have been allotted in each neighborhood.
All land parcels will have access to treated water supply, a sewerage network, and reuse lines for treated wastewater. Thirteen decentralized sewage treatment plants are proposed to serve the entire city.
Alongside source-level treatment by major municipal solid waste (MSW) generators, an integrated solid waste management facility is being designed for the city. As an interim measure, a Waste-to-Energy facility at Guntur is being utilized.
For transportation, the Master Plan adopts a gridiron pattern with a road hierarchy including 60-meter arterial roads, 50-meter sub-arterial roads, 25-meter collector streets, and local roads.
The plan includes a Government City covering 1,093 hectares for offices and residences, a Justice City of 1,339 hectares for judicial institutions, and a Finance City spanning 2,091 hectares to support economic activities. Additional sectors like Education City, Health City, Sports City, Electronics City, Media City, and Tourism City aim to create a balanced urban ecosystem.
To ensure sustainable development, the project emphasizes green and blue infrastructure, including water bodies, reservoirs, and green spaces. International consultants such as the Netherlands-based Arcadis are involved in designing these features to enhance environmental and aesthetic appeal.
Among the first visible developments in Amaravati are campuses of VIT, SRM, and Amrita Universities. BITS Pilani is scheduled to start in 2026, and XLRI will follow soon. AIIMS Mangalagiri is already operational.
The APCRDA project office will be operational in six months, while government housing for MLAs, MLCs, ministers, judges, and secretaries will be ready in 18 months. Key buildings such as the Legislative Assembly and High Court are expected in 24 months, with the Secretariat slated for completion in 36 months.
Government institutions, hospitals, banks, schools, and private organizations are expected to begin operations within 1–2 months and be fully established within 2–4 years.
