The cost of developed land at the Amaravati capital region has risen to Rs 20-Rs 30 crore per acre, Municipal Administration and Urban Development (MAUD) Minister Dr Ponguru Narayana said on Tuesday. In an exclusive interview with Principal Correspondent K Kalyan Krishna Kumar, Minister Narayana revealed that 90 per cent of the preparations for Prime Minister Narendra Modi’s visit to Amaravati to relaunch its construction works have been completed. According to the MAUD minister, even if 30 per cent of the total land in the Amaravati capital region, spanning 34,000 acres, is utilised for key infrastructure development, the government would still have around 25,000 acres of land. Based on the calculation, the land value would be approximately Rs 5 lakh crore. Narayana exuded confidence that Amaravati will become a model self-sustained city, with 4,000 acres of land valued at around Rs 80,000 crore as per current rates, which can be used to repay loans through auctions without relying on public taxes.
Excerpts:
What are the key events during PM Modi’s Amaravati visit?
The Capital City relaunch works begin at 3:20pm May 2. PM Modi will lay foundation for Rs 64,000 crore worth of CRDA-approved works. Of these, Rs 41,000 crore worth of projects have completed tendering process, with L1 bidders already assigned. The rest are under finalisation. An amount of Rs 5,000 crore was spent in 2014 on foundation works, but several technical issues under the previous regime has delayed the progress by eight months.
Amaravati is still seen as a dream. What are the timelines to restore public confidence?
We are confident of gaining the confidence of the public as the Capital City work gains pace. We have a clear plan for the next three years. In two years, 350 km of trunk roads (165 ft wide, one 195 ft wide) will be completed. Roads in the land allocated to farmers (1,500 km) will be built in 2.6 years to international standards with underground power lines. Seven iconic buildings, including a 250-metre tall Assembly and a seven-storey High Court, will be built in three years. 4,000 flats (Apartments) and bungalows for officials, MLAs, and ministers will be ready in 1.6 years.
How are funds being raised, and how is Amaravati self-sustaining?
The Chief Minister envisioned Amaravati as a self-sustaining city. Of the 34,000 acres pooled, 30% was returned to farmers. The rest is being developed, with 4,000 acres retained by the government. We have secured loans, including Rs 15,000 crore from World Bank-ADB, Rs 11,000 crore from HUDCO, Rs 5,000 crore from KfW and some more funds from the national banks. The value of the developed land has gone up from Rs 20 crore to Rs 30 crore per acre as of now. These 4,000 acres will be auctioned to repay loans, without needing to touch the public tax revenues.
Amaravati’s plan includes nine thematic cities. What are they and their objectives?
Amaravati will feature nine thematic cities focused on Government City (administration), Justice City (legal services), Finance City (banking & fintech), Knowledge City (education & research), Health City (medical & pharma), Sports City (international sports), Electronics City (IT & manufacturing), Media City (entertainment), and Tourism City (culture & hospitality), all forming a future-ready “city within a city.” While all cities will have standard infrastructure, their core activities will reflect their themes.
How much construction has resumed?
From 2014-19, works worth Rs 9,000 crore were completed after finalising tenders for Rs 41,000 crore. As much as Rs 5,000 crore was paid to the contractors, farmers as annuities and pensions. Now, after L1 finalisations, contractors are mobilising machinery and manpower. As of now, 30% mobilisation of manpower and machinery has been completed and instructed them to be ready with 100% mobilisation by May 15. After PM Modi’s foundation-laying for inauguration of works on May 2, full-scale of works will commence.
You along with officials visited Gujarat recently. What best practices will be adopted?
We are planning to develop Krishna river, gardens, sports arenas, and event spaces on the lines of Ahmedabad’s 38-km riverfront. . We are also planning a grand NTR statue, for which we studied Gujarat’s Statue of Unity model, including safari parks and tourism infrastructure. These ideas will be adapted for Amaravati and officials are working on it to identify the possibilities.
What is the progress on capital expansion and industrial development?
Farmers gave land with the hope of growth. Land values have risen under the current government, and investor confidence is returning. But for long-term sustainability, people must live and work here. The Chief Minister has proposed 2,500 acres for pollution-free industries and 5,000 acres for an international airport for the further development of the capital city. Without direct air access, global investors may hesitate to invest in pollution free industries. This model mirrors Hyderabad’s rise after the development of Shamshabad airport.
What about the proposed International Sports City?
The Chief Minister has planned a 2,500-acre International Sports City. It will host global events and attract athletes, boosting tourism, hospitality, and service sector jobs. For this along with the international airport, additional land is needed beyond the pooled 34,000 acres. Some MLAs opposed land acquisition and recommended pooling. The State government has directed District Collectors to hold grama sabhas to record farmers’ opinions before moving forward.
Amaravati is promoted as India’s first Green Capital. What defines its eco-vision?
Unlike the national norm of 10% green-blue space, Amaravati has reserved 30%. Riverfronts at Krishna River and reservoirs like Kondaveeti Vagu, Pala Vagu and Gravity canal are part of flood mitigation plan designed by Dutch experts. All buildings in the capital region will follow green standards, and numerous parks are being developed. Amaravati aims to be one of the world’s largest sustainable green-blue cities.