PM Modi Lays Foundation Stone for Amaravati Capital City

Why Amaravati Was Needed

A new capital had to be made for the state of Andhra Pradesh as the state of Telangana was carved out of the state of Andhra Pradesh as per the Andhra Pradesh Reorganisation Act 2014, and the State of Telangana was formed on June 2, 2014. The city of Hyderabad, which served as the capital of the united Andhra Pradesh, would continue to cater as the capital of both Andhra Pradesh and Telangana for 10 years, that is till 2024, after which it will be completely assimilated as the capital of Telangana. Amaravati was chosen to be the new capital of Andhra Pradesh by the new Chief Minister of Andhra Pradesh Chandrababu Naidu.

Ceremony and Attendees

On October 22, 2015, Modi laid the foundation stone for Amaravati amidst much fanfare. The event was grand and attended by dignitaries from India and abroad. The stone laying ceremony was attended by Chief Minister of Andhra Pradesh Chandrababu Naidu and Chief Minister of Telangana K. Chandrashekhar Rao.

Master Plan and Design

Amaravati was planned by Singapore companies, JURONG International and Surbana International Consultants. In September 2015, the APCRDA appointed M/s Surbana International Consultants to create a Detailed Master Plan for the capital city. The draft plan was submitted in December 2015, followed by public consultations in 29 villages from January 12 to 21, 2016. Based on committee recommendations and feedback from public representatives, modifications were made, and the final Master Plan was notified in February 2016.

Pitched as a world-class riverfront capital city, Amaravati is designed as an energy-efficient and green city with concentration on industrial hubs.

Land Acquisition

The Andhra Pradesh state Government through the authority of Andhra Pradesh Capital Region Development Authority (CRDA) acquired about 30,000 acres of land for development of a capital in Amaravati. The Government of Andhra Pradesh followed the Land Pooling Scheme as an alternative to land acquisition and assembled about 90 percent of the land for Amaravati Capital City. Under the LPS, 28,740 farmers voluntarily contributed 34,390 acres of land in exchange for a predefined proportion (around 22–25 percent) of developed land after completing key requisite infrastructure such as roads, water, power, and sewerage.

Start-up Area Development Partner

Ascendas-Singbridge and Sembcorp Development jointly received the letter of award for the master development rights to the Amaravati City Start-up Area in Andhra Pradesh. The award was issued by the Government of Andhra Pradesh, witnessed by Chief Minister Chandrababu Naidu and Mr S Iswaran, Singapore's Minister for Trade and Industry (Industry). The Start-up Area is to be developed in phases over 15 to 20 years and is expected to create the first centres of activity attracting settlers and investment into Amaravati City. The project includes infrastructure development to prepare the site for a mix of business, commercial and residential activities, as well as catalytic development in the Start-up Area.

Immediate Outcomes and Early Progress

Few development works worth about Rs 8,000 crore were undertaken by the then TDP government. The construction began on October 23, 2015 and was expected to be finished by 2018-19. By October 17, 2016, five of the six planned blocks began operations. The Secretariat, covering 45 acres, is designed in a G-plus-1 style. The first block houses the Chief Minister's Office, while the others accommodate various ministers and the sixth block is intended for the AP Assembly and Legislative Council.

What Comes Next

However, the works came to a halt after TDP lost power in 2019 as the YSR Congress Party government headed by Y.S. Jagan Mohan Reddy decided to develop three state capitals. In 2019, the development of Amaravati came to a standstill following a change in government, which deprioritized Amaravati in favor of a decentralized capital approach, with plans to develop three capital cities across the state. This shift led to the suspension of all ongoing construction works in Amaravati.

In 2022, the AP High Court ruled that Amaravati must remain the state's capital, marking a significant legal victory for the protesting farmers. Following the 2024 elections, the new government revived the Amaravati project, resuming development efforts and restoring confidence among farmers. The state government has decided to take up various works at a cost of Rs 77,250 crore. As of July 2026, the project is undergoing revival with renewed central government support.