Cabinet sub-committee on Amaravati, helmed by Urban Development Minister P. Narayana, hold a meeting on Monday at the Secretariat on March 10, 2025
| Photo Credit: Special arrangement
The Andhra Pradesh government has estimated an expenditure of ₹64,721 crore for the construction of Amaravati, the State’s capital city, Minister for Municipal Administration and Urban Development P. Narayana announced in the Assembly on Tuesday (March 11, 2025). He assured that the construction of the capital would be completed within three years, that is by 2028.
Responding to a question posed by BJP MLA Yelamanchili Satyanarayana Chowdary (Sujana Chowdary) during the Question Hour, the Minister criticised former Chief Minister Y.S. Jagan Mohan Reddy, stating that while Jagan had initially declared in the Assembly that 30,000 acres were needed for Amaravati’s development, he later changed his stance, leading to uncertainty in the capital project.
The government plans to raise funds for Amaravati’s development through multiple sources. Loans and grants will come from institutions like the World Bank and Asian Development Bank, which are expected to provide ₹13,400 crore. KfW Bank will contribute ₹5,000 crore, while HUDCO is set to release ₹11,000 crore within two to three days. The Central Government is also providing grants, the Minister explained.
Additionally, the government will generate revenue by selling and leasing land within Amaravati. Efforts are also underway to raise funds in national and international markets at low interest rates. Minister Narayana emphasised that multi-party agencies and banks would play a crucial role in financing the capital’s infrastructure.
The Amaravati Government Complex (AGC) will include residential areas, administrative buildings, trunk infrastructure, and Land Pooling Scheme (LPS) amenities. The government has committed to hand over developed plots to farmers in a phased manner within three years, he said.
Key construction targets include the completion of trunk roads, which will be 165 feet and 185 feet wide, within two years. LPS roads will be completed in three years. Government office buildings, more than 50% of which have already been constructed, are expected to be fully completed within one-and-a-half years. The Legislative Assembly, Secretariat, and High Court will be finished within three years.
Published – March 11, 2025 02:44 pm IST
