The Parliament’s approval for officially recognising Amaravati as the capital of Andhra Pradesh has come as a shot in the arm for Chief Minister N Chandrababu Naidu, whose government is pulling all stops for early completion of his dream project.
Following a resolution by the State Assembly, the Andhra Pradesh Reorganisation (Amendment) Bill was passed by both Houses of Parliament, granting Amaravati the legal status as the state’s sole capital, with effect from June 2, 2024.
The amended Bill seeks to make Amaravati the only capital of Andhra Pradesh and make it the state’s permanent capital. It is meant to avoid the ambiguity caused by the previous YS Jagan Mohan Reddy-led YSR Congress Party government, which a proposed decentralised three-capital formula – Amaravati as the legislative capital, Visakhapatnam as the administrative capital, and Kurnool as the judicial capital.
The declaration of Amaravati as the sole capital is expected to bring clarity to governance and planning and the focus will now shift to executing the works, building infrastructure, and restoring investor confidence. Describing the development as a ‘historic moment,’ Naidu has vowed to complete all the works related to the greenfield project within the specified timelines.
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Since Telangana's carving out from the original combined Andhra Pradesh in 2014, Amaravati has been at the centre of the state's political and developmental discourse. Following that year's elections, Naidu announced Amaravati as the new state's capital.
It was launched with great ambition, envisioned as a city surpassing Hyderabad, which Naidu helped transform into a major IT and infrastructure hub. Around 34,000 acres of land were pooled from over 30,000 farmers across 29 villages near Vijayawada, Guntur, Tenali and Mangalagiri.
Under a unique land pooling scheme, farmers were promised developed residential and commercial plots along with annual payments for 10 years. The vision was to create a self-sustaining, modern capital capable of generating economic opportunities and fostering entrepreneurship.
The issue grew contentious during the YSRCP's tenure from 2019 to 2024, when the government halted works on Amaravati and instead proposed a three-capital model.
This plan, however, faced legal and administrative challenges and ultimately failed to materialise. The issue remained central in the 2024 elections, where the Telugu Desam Party-led NDA secured a decisive victory, winning 164 out of 175 seats. With the change of guard, Amaravati has once again taken the centre stage.
In the special Assembly session on March 28, Naidu had said that legal certainty on the capital issue can be achieved only through suitable amendments to the Andhra Pradesh Reorganisation Act, 2014.
For Naidu, this marks the realisation of another major ambition. He has consistently maintained that when the TDP joined the NDA, there was an agreement that Andhra Pradesh would have Amaravati as its sole capital.
Drawing from his experience in transforming Cyberabad into a major IT hub, Naidu envisions building a world-class city in Andhra Pradesh that serves not only as the capital but also as a centre for top-tier infrastructure, IT, AI, and quantum technology.
The AP Capital Region Development Authority has commenced works worth over Rs 90,000 crore. Financial support has been secured from institutions like HUDCO, the Asian Infrastructure Investment Bank, and the World Bank, enabling the government to accelerate progress.
Over and above the 34,241 acres of land that was pooled from farmers, the government is acquiring another 30,000 acres through pooling to expand the capital region.
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