Amaravati: time for swift, decisive action
Referring to the timelines of the proposed capital Amaravati, Andhra Pradesh Chief Minister N. Chandrababu Naidu had said, “Rome was not built in a day.” When he first conceptualized Amaravati in 2015, he envisioned a world-class capital comprising nine cities along the banks of the Krishna River. But the journey has been tumultuous and significant challenges remain.
April 2026 was a turning point that brought long-awaited clarity. Following a resolution passed by the State Assembly, the Andhra Pradesh Reorganization (Amendment) Bill was passed by both Houses of Parliament, giving Amaravati legal status as the sole capital of the State from June 2, 2024.
Terming the development as a ‘historic moment’, Mr. Naidu said that it puts an end to the uncertainty created during the previous government led by YS Jagan Mohan Reddy and YSR Congress party. While the NDA unanimously supported the bill, the YSR Congress opposed it, voicing concerns and leading a strike in Parliament.
A decade ago, Amaravati was launched with great ambition, envisioned as a city that would surpass Hyderabad, and Mr. Naidu helped turn it into a major IT and infrastructure hub. Nearly 34,000 acres of land from more than 30,000 farmers in 29 villages near Vijayawada, Guntur, Tenali and Mangalagiri have been brought together. Under a unique land pooling scheme, farmers were promised to develop residential and commercial plots along with annual payments for 10 years. The vision was to create a self-sustaining, modern capital that could create economic opportunities and encourage entrepreneurship.
Despite favorable conditions and a strong mandate, progress slowed significantly, especially in the second half of Mr Naidu’s 2014-19 term. Delays in planning and implementation hindered development and contributed to political disruptions in the 2019 elections. Although Mr Naidu had launched the project with the support of international consultants including Singapore, the UK and Germany, by the end of his tenure he was short of capital.
The subsequent YSR Congress government halted the development of Amaravati and proposed a three-capital model: Visakhapatnam as the executive capital, Amaravati as the legislative capital and Kurnool as the judicial capital. This plan faced legal and administrative difficulties and was ultimately not implemented.
The issue remained central in the 2024 elections, where the Telugu Desam Party-led NDA secured a decisive victory by winning 164 out of 175 seats, while the YSR Congress was reduced to 11 seats. Mr Naidu’s development-focused agenda resonated more strongly with voters than the Opposition’s welfare-focused approach.
Efforts to attract investment are being renewed and major global companies such as Google, Infosys, Tata Consultancy Services and ArcelorMittal/Nippon Steel have launched projects in Andhra Pradesh. Many companies that withdrew during the previous regime began to return.
With political clarity restored, the State government is now working to revitalize Amaravati. Infrastructure development worth around Rs 60,000 crore is underway, including major road networks, the Supreme Court, the Secretariat and residential facilities for officials. Financial support from institutions such as HUDCO, the Asian Infrastructure Investment Bank and the World Bank enabled the government to accelerate progress.
As part of the broader vision, Mr. Naidu projects that Amaravati will have a $2.4 trillion economy by 2047 and serve as a growth engine for the state’s economy.
FROM THE EDITOR | Balance is key: On Andhra Pradesh Reorganization (Amendment) Bill and Amaravati
Executive struggle
However, given the scale of Amaravati and the limited construction window in the current period, changing global dynamics, strained State finances and land sharing issues, the government faces the challenge of delivering concrete results quickly. Priorities include developing residential areas, increasing economic activities, expanding social infrastructure and relocating government personnel to the capital. At the same time, it is vital to ensure balanced regional development across the state.
Although Amaravati’s legal status has been determined, its transformation into a functional capital will depend on sustainable political will, effective and rapid implementation and inclusive growth.
It was published – 06 April 2026 12:32 IST
