N. Chandrababu Naidu, the leader of the Telugu Desam Party (TDP), declared Amaravati as Andhra Pradesh‘s capital. This announcement came a day before his inauguration as Chief Minister. Naidu emphasized that Amaravati would remain the only capital, contrasting with former Chief Minister Jagan Mohan Reddy’s proposal of the ‘Three Capitals’ formula.

Chandrababu Naidu stated that Amaravati will serve as our sole capital, while Visakhapatnam will be nurtured as the financial hub.

On Wednesday, Naidu was sworn in as Chief Minister of Andhra Pradesh. The NDA claimed 164 seats out of 175 in the Assembly, while YSR Congress, under Jagan Mohan Reddy’s leadership, secured 11 seats.

Following their return to power, TDP is fast-tracking efforts to establish Amaravati as the new capital, previously proposed by Naidu. Despite initial progress, the plan was halted post-TDP’s defeat in the 2019 elections. In 2019, Jagan Mohan Reddy suggested three capitals for Andhra Pradesh – Visakhapatnam, Amaravati, and Kurnool. Although a bill was introduced, a High Court stay has suspended it, now subject to Supreme Court deliberations.

What Led to Amaravati’s Selection?

In 2014, Andhra Pradesh underwent partition, birthing Telangana as a new state. Hyderabad retained its status as the shared capital for a decade until June 2, 2024, when it became solely Telangana’s capital.

At the time of partition, Hyderabad was designated as Telangana’s permanent capital, leaving Andhra in need of a new one.

Upon assuming power in 2014, Chandrababu Naidu designated Amaravati as the capital. Prime Minister Narendra Modi laid the cornerstone for Amaravati’s new capital on October 22, 2015. Additionally, Naidu’s administration acquired 33,000 acres of land from farmers for its construction.

Amaravati was selected as Andhra’s new capital due to its strategic location between the major urban hubs of Vijayawada and Guntur, as per the master plan. Approximately 8,000 square kilometers surrounding Amaravati will be developed as the capital region, encompassing Vijayawada and Guntur.

Amaravati derives its name from the Amareśvara Temple, dedicated to Lord Shiva, believed to have been erected in the second century. It was once the capital of the Satavahana and Pallava dynasties and saw the construction of a stupa and monastery during Emperor Ashoka’s Maurya Empire reign.

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How will Amaravati shape up?

As outlined in the Amaravati Master Plan on the Andhra Pradesh Capital Region Development Authority (CRDA) website, the capital will unfold across a span of 217 square kilometers. Amaravati aims to emerge as a top-tier city, catering to the diverse needs of its inhabitants.

Within the central capital precinct, administrative buildings, cultural landmarks, and communal spaces will converge. The layout will prioritize seamless connectivity between residential sectors, commercial districts, educational establishments, and economic centers via a network of roads and public transit.

Projections from the Master Plan anticipate Amaravati’s population to surpass 3.5 million by 2050. With its new status as the capital, Amaravati is poised to generate over 1.5 million employment opportunities.

Amaravati will comprise nine distinct cities:

1. Government City: Positioned in a north-south orientation, this area will blend residential zones with governmental establishments, covering 1,093 hectares.

2. Justice City: Situated adjacent to Government City, it will accommodate judicial institutions, spanning 1,339 hectares.

3. Finance City: Designed to bolster Andhra’s economy, it will encompass both commercial and residential sectors across 2,091 hectares.

4. Knowledge City: Located south of Justice and Finance cities, it will feature university campuses, colleges, and a knowledge park, spreading over 3,459 hectares.

5. Electronic City: Geared towards attracting IT and electronic industries to South India, it will occupy 2,663 hectares.

6. Health City: Dedicated to providing superior healthcare services to the capital’s populace, it will cover 2,647 hectares.

7. Sports City: Positioned northwest of the riverfront, it will boast expansive stadiums and event venues for international sports events, covering 1,679 hectares.

8. Media City: Planned near Anantavaram, it will be a hub for media and culture, nestled close to the historic Anantavaram Venkateswara Swamy Temple, spanning 2,067 hectares.

9. Tourism City: Strategically located near the Undavalli Caves along the Krishna River, it will stretch across 4,716 hectares, promoting tourism.

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What is the estimated cost of constructing the capital?

When Naidu announced Amaravati as the capital in 2015, he proposed developing 9 theme cities and 27 townships within Amaravati in 2016. As per the 2019 status report, an approximate ₹1.09 lakh crore will be invested over the next two decades to establish Amaravati as the capital.

The World Bank pledged ₹30 crore, and the Asian Infrastructure Investment Bank committed $20 crore to facilitate Amaravati’s development as the capital. However, funding became uncertain after the TDP lost power in 2019.

In December 2019, Jagan Mohan Reddy introduced the ‘Three Capitals Bill’, suggesting the establishment of three capitals for Andhra Pradesh. Visakhapatnam would serve administrative functions, Amaravati would house the legislative assembly, and Kurnool would accommodate the high court. Despite spending ₹10,000 crore, as indicated in the CAG report last year, the acquired land remained unused.

Nevertheless, with Chandrababu Naidu reinstated as Chief Minister, there is optimism for accelerated progress in reestablishing Amaravati as the capital. Additionally, the TDP’s presence in the central government could potentially expedite the process.