Vijayawada: The ambitious capital city project of Andhra Pradesh saw its best of times and its worst of times in the last 10 years. From being projected as one of world’s most futuristic cities with worldclass facilities, to being turned into an abandoned and ghost city surrounded by wild vegetation and stagnant water, Amaravati saw it all between 2014 and 2024.
The 2024 election results, which saw the TDP-led NDA alliance storm to power in the state, breathed fresh life into the capital city project. The New Year will shape its future course and decide how the grand masterplan designed with liveability concepts materialises.
The previous TDP govt, which took over the reins of the newly-bifurcated AP in 2014, chose to develop Amaravati as the state’s greenfield capital. However, the YSRCP govt which came to power in 2019, abandoned the project and came up with its own ‘three capitals’ formula.
The decision was opposed by all opposition parties and stakeholders. Farmers who gave land for Amaravati protested for over 1,600 days and after a lengthy litigation, won the case in the high court, which was challenged by the YSRCP govt in the Supreme Court.
While the case is still pending, the mid-2024 regime change has changed the fortunes of Amaravati. The Singapore govt consortium, which prepared the capital city masterplan and was supposed to develop the core capital area, was forced to leave the project after it was abandoned by the YSRCP regime. Over 130 central govt institutions and public sector undertakings proposed to set up offices in Amaravati but stayed away due to the uncertainty over the capital. Several educational institutions, IT companies, and other industries also stepped back.
The regime change seems to have revived investor confidence. The NDA govt has reached out to Singapore govt to be a part of the capital development project. The Union govt is also backing Amaravati as the only capital of AP and is facilitating funding from global agencies like the World Bank.
While the investors seem to be taking a cautious approach this time, the AP govt is trying everything it can to boost their confidence. The govt has decided to take the development of Amaravati to a point of no return, which cannot be undone even if there is a regime change. Chief minister N Chandrababu Naidu has set a target of three years to complete all capital city works that were abandoned five years ago.
Institutions like World Bank, ADB, and Hudco have already come forward to fund the project. The World Bank has agreed to give Rs 15,000 crore, while ADB has approved a funding of Rs 13,500 crore. Hudco has committed Rs 11,000 crore for the project.
The govt has already announced that there will be no change in the Amaravati masterplan. Tenders are being called for various developmental works that include the iconic assembly, high court, and secretariat buildings, housing projects for employees and legislators, trunk infrastructure in the developed layouts, and other essential facilities like roads, drains, electricity, and drinking water.
Municipal administration and urban development minister P Narayana has said that all tenders will be allotted by the end of Jan 2025. The govt has set different targets for different works and fixed 2027 as the deadline for completion of phase 1 works.
