About four to five lakh people are expected to attend the function to be held at Uddandarayunipalem village on the banks of river Krishna, Parakala Prabhakar, Advisor (Communications) to the state government, told PTI.
The Prime Minister would spend about 90 minutes at the event during which he will perform the 'shila nyas' for the capital city, about 40 kms from Vijayawada, the commercial capital of Andhra Pradesh.
Amaravati, situated in Guntur district, was once the seat of power of Satavahana rulers.
The state government has invited several Union Ministers, Chief Ministers, important political leaders from across the country, eminent personalities, top industrialists and also foreign dignitaries for the event.
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Chief Minister N Chandrababu Naidu has personally invited the Prime Minister, several Union ministers, Governor ESL Narasimhan and Telangana Chief Minister K Chandrasekhar Rao, among others.
Ministers and delegations from Singapore and Japan are also expected to attend the event.
Singapore government agencies have prepared the master plans for the three-layered capital -- seed capital, capital city and capital region.
While the Centre would provide funds for construction Of legislature buildings as per the Andhra Pradesh Re-organisation Act, the state government has plans to set up hubs of sports, entertainment and in other fields to promote economic activity, an official release said earlier.