Chandrababu Naidu's dream Amravati project revived, will cost Rs 40,000 cr

Under the former TDP government, Amaravati's infrastructure development expenditure reached Rs 21,000 crore. However, the vision was put on hold following a regime change in 2019

Amravati, located in the heart of Andhra Pradesh, was once envisioned as an epitome of ambition and modernity under Telugu Desam Party chief Chandrababu Naidu’s leadership. This vision faltered when Naidu lost power in 2019, leading to a period of neglect and uncertainty under the YS Jagan Mohan Reddy administration.

For four years, Amravati’s development stalled under the Yuvajana Sramika Rythu Congress Party administration. The city’s ambitious plans and international investments were left in limbo, disappointing residents and investors.

Now, with Naidu back in power, Amravati’s revival is underway. He has pledged to restart the city’s development, rekindling hopes.

Workers and engineers say they have received instructions to proceed, said an Indian Express report.

“We are clearing weeds and vegetation around buildings; we should complete the pending work soon,” the national-daily cited a contractor as saying.

In Tulluru, dense vegetation around high-rise apartments intended for the state’s MLAs is being cleared. The report mentioned that the executive engineer confirmed he has received directives to resume work, with finishing touches being applied. “The approach road to the buildings and the trunk road connecting Tulluru to other areas will also be laid soon,” he said.

Official orders, he added, will be issued soon.

What is the Amravati city plan?

Amaravati city, spanning 217 square kilometres, began taking shape in 2015, just a year after Naidu became Andhra Pradesh’s Chief Minister following the state’s bifurcation. However, its development stalled in 2019 when Y S Jagan Mohan Reddy and the YSR Congress party won the Assembly elections. The project has remained a priority for Naidu, especially since Andhra Pradesh lost Hyderabad to the newly formed state of Telangana in 2014.

During Naidu’s previous term, flats for MLAs, MLCs, AIS officers, and secretariat staff were built, though finishing touches were pending, according to the report. A high court building, inaugurated during his regime, is operational, as are the secretariat and legislative complexes.

An official stated that construction of roads, drains, utility ducts, and other infrastructure will commence soon. After Naidu’s swearing-in, the government is expected to release payments to L&T and other companies to resume work.

Real estate dealers and developers have also begun surveying villages. When the capital city was initially announced, numerous real estate offices were established in Velagapudi and Tulluru, but many closed or relocated after Reddy came to power.

A 2016 master plan for the capital city estimated the project’s cost at Rs 50,000 crore. The plan envisioned developing a greenfield city in Guntur district on the south bank of the Krishna River. A consortium of Singapore firms, led by urban planning company Surbana Jurong, served as the master planners and lead consultants for planning, urban design, infrastructure, and industrial development.

It was planned to be a completely new city with wide roads, flyovers, underpasses, an international airport and a metro train network, the national-daily said citing a contractor who is known for designing many iconic buildings in Mumbai such as The Imperial towers and DY Patil Stadium.

How expensive will be Chandrababu Naidu’s Amravati dream city?

According to industry estimates, approximately Rs 40,000 crore is now needed to build infrastructure and various government buildings in the city on the Krishna riverbank. This is nearly double the Rs 21,000 crore estimated by the Andhra Pradesh Capital Region Development Authority (APCRDA) during Naidu’s previous tenure as Chief Minister, a Financial Express report stated.

During Naidu’s earlier tenure, Rs 10,500 crore was already spent on Amaravati’s development. Real estate experts from the state estimated that an additional Rs 10,000-12,000 crore was needed for building projects. While farmers contributed 33,000 acres for the project, the government possesses about 4,000 acres, the business-daily claimed.

The initial plan envisioned the city spanning 217 square kilometres, divided into six clusters including civic and entertainment areas. The civic cluster alone was to cover 1,600 acres. The city was designed to feature over a dozen urban plazas, all powered by renewable energy.

Inspired by Singapore, the ‘sustainable city’ was planned to be connected by e-buses, water taxis, metros, and bicycles.

The government expects to obtain about 12,000 acres of land for sale, with prices reaching Rs 30,000 per square yard. Consequently, the government anticipates generating Rs 10 crore per acre.