Jagan alleges corruption in Amaravati project, proposes ‘MAVIGUN’ as alternative

Alleging large-scale corruption and financial mismanagement in the Amaravati capital project, YSR Congress Party (YSRCP) chief YS Jagan Mohan Reddy on Wednesday suggested the ‘MAVIGUN’ corridor as a cost-effective alternative development model to Chief Minister N. Chandrababu Naidu.

Addressing the media, the former Chief Minister alleged that the NDA government diverted huge borrowings for the Amaravati project and this created a financial burden on the State.

“The administration under Mr. Naidu had been reduced to unbridled corruption and exploitation. Excessive spending on capital project has started affecting basic welfare schemes,” he said.

He claimed that many welfare schemes, such as wage reimbursement, housing, health care, agricultural support and expansion of medical schools, had either slowed or stalled due to resource diversion.

Mr. Jagan said developing Amaravati in almost one lakh acres could require around ₹2 lakh crore to create basic infrastructure. He asked how the State could afford such an expenditure while clearing pending dues, including the ₹36,000 crore due to government employees.

Highlighting borrowing patterns, he warned that continued reliance on loans could strain the State’s finances for decades.

He claimed that there were disruptions in the tender process and previously canceled contracts were transferred to the same companies.

He accused the government of suppressing criticism and using the Assembly for political targeting instead of a meaningful debate, while questioning the non-convening of the Legislative Council on the Amaravati issue.

Mr. Jagan proposed the ‘MAVIGUN’ corridor connecting Machilipatnam, Vijayawada and Guntur as a cost-effective growth model.

“MAVIGUN corridor, along with existing infrastructure, can be developed into a major economic hub at a cost well below the projected cost of Amaravati, potentially saving around Rs 1.9 lakh crore,” he said and suggested strengthening Visakhapatnam as administrative capital to generate revenue.

Reiterating that the YSRCP was not against Amaravati but against what he called ‘unsustainable policies’, Mr. Jagan called for a more practical and balanced approach to development.

He also questioned the legal and political basis of recent Parliamentary proceedings regarding the capital. Mr. Jagan argued that the Constitution does not explicitly mention the term ‘capital’ but instead means ‘seats of government’.

Referring to the Union government’s submissions before the courts that it has no direct role in such decisions, he said the power to determine the capital of a State lies with the State government alone.