Amaravati is now the focus of a major push forward as new projects worth billions of dollars are openly shared. These big plans aim to bring new life to the city, making it a main place for people and business. After a long wait, this move brings real hope for new homes and jobs. Work on these large building plans is set to start very soon, pointing to a new future for the region and turning a long-held dream for the city into a clear path forward.
Understanding the City’s Past
Amaravati, a planned city in Andhra Pradesh, is seeing a significant restart in its building efforts. This city was chosen as the new capital after the state of Andhra Pradesh was divided in 2014. The initial idea was to create a world-class capital, with a master plan designed by a well-known firm from the United Kingdom. This plan covered an area of over 217 square kilometers and was inspired by modern cities like Amsterdam, Singapore. Tokyo.
But, between 2019 and 2024, building work on the capital stopped. This happened due to a change in the state government and new plans for having three capital cities. During this time, the city, which was meant to be a busy center, seemed empty. Reports from that period described it as a “ghost town,” with large buildings left unfinished.
The situation changed with the return of Chief Minister N Chandrababu Naidu to power in June 2024. Since then, the Amaravati project has been brought back to life, with fresh money coming in and renewed interest from outside the country. In May 2025, Prime Minister Narendra Modi officially started the city’s building work again.
The Andhra Pradesh High Court played a key role in this by ruling in 2022 that Amaravati should remain the only capital, which was a win for the farmers who had given their land. The new government has promised to restart payments and benefits for these farmers and help them get bank loans for their plots.
Major Plans for New Work
The Andhra Pradesh Capital Region Development Authority (CRDA) has put forward a huge plan for Amaravati. This plan includes projects valued at around ₹81,317 crore. Out of this, tenders, which are formal offers for work, have already been made for projects worth ₹50,552 crore. Building has already started on 74 different projects.
These projects cover many essential areas of city life. They include building homes, public buildings, roads, water pipes. systems to control floods. Homes for government ministers, elected officials. other workers are also part of these plans.
The city’s blueprint also includes special areas like a Sport City, places for tourism, airport facilities. centers for new technology like biotechnology. Plans are also in place for new schools, colleges. hospitals. Recent approvals have also been given for high-density living areas, mixed-use buildings. places for big meetings near hotels.
Officials have confirmed that construction for these works will be completed within three years. Chief Minister N Chandrababu Naidu has even asked officials to finish the work six months earlier than planned.
Money Coming In for Projects
To support these massive projects, money is coming from various sources. The estimated total budget for Amaravati’s building works, as decided in 2024, was about ₹64,910 crore. More recently, Chief Minister Naidu said that the foundation for new investments worth ₹1 lakh crore would be laid soon.
Here is a breakdown of some of the money promised for the city’s building:
| Source of Money | Amount Committed | Details |
|---|---|---|
| Government of India | ₹15,000 crore | Financial help committed in 2024. |
| World Bank | USD 800 million | Loan approved in December 2024 for city building. First part of money (USD 205 million) received in March 2025. |
| Asian Development Bank (ADB) | USD 800 million (committed in principle), USD 788. 8 million (loan approved) | Committed in October 2024 for Phase I. Loan approved in December 2024. ADB expects USD 3. 64 billion investment in Phase I between 2025 and 2029. |
| Housing and Urban Development Corporation (HUDCO) | ₹11,000 crore | Agreement signed to provide a loan. |
| KfW (German bank) | ₹5,000 crore | Talks are happening for this loan. |
The state government is also looking at selling or leasing out land to raise more funds for building the capital.
Big Roads and Other essential Works
A key part of the new work is the Amaravati Outer Ring Road (ORR). This big road project will cost ₹16,310 crore and will be about 189. 4 kilometers long. Work on the ORR started again on October 1, 2024, after getting approvals from both state and central governments.
Other vital works that are moving forward include:
- Construction of 4,000 homes for government staff and workers, planned to be ready by March 2026.
- Road building projects that are worth ₹40,000 crore.
- Work on canals like Kondaveeti Vagu, Palavagu. Gravity Canal, which are being made wider and deeper to stop floods.
- Building of water storage areas (reservoirs) at Sakamuru, Krishnayapalem. Neerukonda.
- Plans to build the Legislative Assembly and High Court within 24 months. the Secretariat within 36 months.
- A new 50-story office tower and 27 new town areas are also part of the grand vision.
- An investment of ₹1,200 crore for a Green Ammonia Manufacturing Facility to support clean energy.
Chief Minister Naidu wants the city to run entirely on green energy in the future. He has also asked officials to make sure that approvals for companies wanting to build their offices in the city, like BITS Pilani and XLRI, happen quickly.
What People and Leaders are Saying
Leaders of the state government have spoken clearly about their plans for Amaravati.
Chief Minister N Chandrababu Naidu has said, “CRDA has proposed works worth a total of Rs 81,317 crore for the construction of the capital city. Currently, it called tenders for projects worth Rs 50,552 crore.”
He has also stressed the need for rapid building and practices that protect nature. The Chief Minister wants the public to see clear progress in the city’s construction. He has also ordered that any problems faced by farmers regarding their plots should be fixed quickly, aiming for resolution within one week.
The Municipal Administration Minister, P. Narayana, has stated that the construction of Amaravati will be finished in three years.
From the farming community, there is a clear wish for visible economic benefits and for the CRDA to quickly finish land pooling and plot registrations. They also want their yearly payments and pensions to be given out on time. While many welcome the new push, there was some resistance to pooling more land in July 2025, which led to that process being stopped for now.
Businesses in the area are happy about the restart of the project. Local business owners believe that the new capital will greatly help the state’s economy. Ordinary people also have new hope that the city plan will lead to better roads and facilities, more jobs. a better way of life.
Looking Ahead for the City
Even with recent heavy rains, work in Amaravati has continued without stopping. This shows the government’s strong focus on building the capital. The Chief Minister has emphasized the need for high-quality work and checking progress regularly.
The city aims to be an essential center for the region, expected to create 1. 5 million jobs, house 3. 5 million people. have a large economy by the year 2050. The government is also trying to get big companies and private groups to invest in different areas like sports, tourism. healthcare.
The current efforts show a strong move to make Amaravati a working capital city, bringing many new projects and large amounts of money to the area. The focus is on finishing these projects on time and making sure the city becomes a strong economic and living center for the state.
