With foundational surveys for Andhra Pradesh's new capital, Amaravati, now complete, the state government led by N. Chandrababu Naidu is preparing to turn the multi-billion-rupee plan into visible construction before the momentum fades. Recognising the urgency, the government has shifted from planning to execution. The decisions taken at the APCRDA's 63rd meeting on July 7 signal that the project has entered its implementation phase. By pairing enhanced benefits for farmers with tougher legal measures to resolve land disputes, the government has signalled that the period of administrative delay is over.
Why is there a sense of urgency around Amaravati now?
The Andhra Pradesh government says the planning and survey work for Amaravati is largely complete and the focus has now shifted to construction. With around two years of its current term already over, it wants to show visible progress on key infrastructure and keep the project on schedule.
What is Amaravati Economic Region (AER)?
The Amaravati Economic Region (AER) is a regional development plan centred on the new capital. It covers nine districts—West Godavari, Eluru, Krishna, NTR, Guntur, Bapatla, Palnadu, Markapuram and Prakasam—which together account for about one-third of the state's population and area. The plan aims to connect Amaravati with industries such as agriculture, aquaculture, food processing and manufacturing across the region.
How is the Amaravati project being funded?
The project, estimated to cost over ₹40,000 crore, is being funded through a mix of international loans, domestic financial institutions and Central government support. Funding includes loans from the World Bank and the Asian Development Bank (ADB), financing from NaBFID, HUDCO and NABARD, and a ₹15,000 crore special assistance package from the Centre.
How was land assembled for Amaravati?
Most of the land was assembled through the Land Pooling Scheme (LPS) instead of conventional land acquisition. Under the scheme, around 29,700 farmers pooled about 33,000 acres of land in return for developed residential and commercial plots, along with other benefits.
Why did work on Amaravati slow down between 2019 and 2024?
After coming to power in 2019, the YSRCP government proposed a three-capital model, with Visakhapatnam as the executive capital, Amaravati as the legislative capital and Kurnool as the judicial capital. The policy shift led to legal disputes, halted construction, protests by farmers who had pooled land, and delays in funding. Some international funding commitments were also put on hold during this period.
What is the MAVIGUN proposal?
MAVIGUN is an alternative development proposal that focuses on strengthening the existing urban corridor linking Machilipatnam, Vijayawada and Guntur instead of building a new greenfield capital. Supporters argue that developing existing cities would be a more practical and cost-effective approach.
Has Amaravati's status as the state capital been legally strengthened?
The government says legislative changes have reaffirmed Amaravati as Andhra Pradesh's capital, helping restore confidence among lenders and investors. However, as with any major policy, future governments or legislatures could revisit the issue.
What do recent project audits show about construction progress?
According to APCRDA data as of June 27, 2026, construction is behind schedule. Across 95 ongoing projects worth nearly ₹51,000 crore, physical progress stood at about 18%, against a planned target of nearly 45%.
Why is construction behind schedule?
The audit points to delays across several major projects and a shortage of workers. The largest package, worth ₹12,818.63 crore across 19 works, has achieved only 7.49% physical progress against a target of 30.61%. Another package worth ₹11,094.92 crore has reached 18.86% progress against a planned 46.96%, while a ₹4,552.69 crore engineering package has achieved 15.99% against a target of 54.72%.
The audit also found that only about 26,900 workers had been deployed against a planned workforce of more than 36,000. In the ₹12,818.63 crore package, contractors had deployed 2,623 workers against a requirement of 5,700. In the ₹11,094.92 crore package, 4,647 workers had been deployed against a target of 7,236.
What new measures has the APCRDA announced to resolve land issues and support farmers?
The APCRDA has announced several measures, including:
Using the Land Acquisition Act to acquire a few remaining land parcels needed for key roads where negotiations have failed.
Providing an annual annuity of ₹40,000 per acre for 10 years to farmers who newly join the Land Pooling Scheme for projects such as the airport, railway lines, Sports City and the Inner Ring Road.
Extending annuity payments for farmers who pooled land between 2014 and 2019 from 10 years to 15 years.
Increasing temporary rental assistance for displaced families from ₹5,000 to ₹10,000 a month for up to a year, along with replacement plots.
Waiving institutional crop loans of up to ₹1.5 lakh for eligible farmers joining the latest land pooling programme.
What is the government's plan for land allotment and urban development?
The government plans to develop Amaravati through 25 planned townships spread across about 217 sq km. It says each township will have schools, hospitals and other essential public facilities. The APCRDA has also approved ₹159 crore in compensation to resolve land ownership issues affecting 307 acres earmarked for the proposed International Sports City and has set aside land for educational, cultural and other institutions.
What is the status of the Secretariat and the overall capital city?
The proposed Secretariat Complex remains the main administrative project in Amaravati. Designed by Foster + Partners, it will include five towers—four 40-storey departmental towers and a central 49-storey General Administration Department (GAD) tower. However, land acquisition and legal disputes continue to delay parts of the first phase. Of the roughly 2,500 acres needed, about 900 acres are still under litigation.