Prime Minister Narendra Modi on 2 May relaunched the works for the construction of Amaravati, the capital city of Andhra Pradesh. Modi also laid the foundation stone for various projects across the state, including in Amaravati, worth ₹57,962 crore.
The projects include the construction of five towers of the Amaravati Government Complex, the High Court, and the Legislative Assembly Building, to name a few.
Modi had laid the foundation stone of Amaravati for the first time way back on 22 October 2015, in his first term as PM, during an event in Guntur district of Andhra Pradesh. The then TDP government, led by Chief Minister Chandrababu Naidu, undertook a few development works. However, the works came to a halt after TDP lost power in 2019, as the YSR Congress Party government. Chief Minister YS Jagan Mohan Reddy, decided to develop three state capitals instead of Amaravati.
With the TDP-led NDA storming to power in June last year, Naidu decided to resume work on his dream project, which has been pending for about 10 years now amid uncertainty, legal tangles, and political turmoil.
“Amravati was the name of the capital of Indralok, and it is not merely a coincidence that Amravati is the capital of Andhra Pradesh. It is a sign of the establishment of ‘Swarna Andhra’. ‘Swarna Andhra’ will strengthen the pathway for Viksit Bharat and Amravati will empower the vision of ‘Swarna Andhra’” Modi said at the launch.
The idea of reviving Amaravati as the new capital emerged for the first time in 2014 when Andhra Pradesh was bifurcated into two states and Hyderabad became the capital of Telangana.
What projects will the PM inaugurate today?
Of the ₹58,000 crore worth of projects launched by PM Modi on Friday, ₹49,000 crore for 74 major infrastructure projects in Amaravati, including the construction of the Andhra Pradesh Legislative Assembly, Secretariat, High Court, and residences for judicial officers.
Modi also laid the foundation stone for one project at the DRDO Missile Testing Centre, worth ₹1,459 crore, for Unity Mall, Visakhapatnam, DPIIT, worth ₹100 crore. He also laid the foundation stone for Guntakal-Mallappa gate rail overbridge, which will be built at a cost of ₹293 crore besides 6 new National Highway projects worth ₹3,176 crore.
Modi also inaugurated eight completed National Highway projects that was built at a cost of ₹3,680 crore.
From 2015 to 2025 – the cost involved
Amravati is the ten-year-old dream of Naidu, the chief minister. In 2015, the construction of projects in Amaravati was estimated to be ₹ 27,097 crore. In 2025, the cost stands at approximately ₹64,721 crore, according to estimates.
In 2014, when the idea of Amaravati was first floated, YS Jagan Mohan Reddy, then in opposition, decided to support it in the Assembly. Reddy, however, criticised the land acquisition of 33,000 acres of fields where three crops can be grown a year for the construction of the capital.
In October 2015, Reddy didn’t attend the Amaravati foundation stone laying ceremony where PM Modi was the chief guest. Later, YSR Congress alleged that a land scam worth thousands of crores had taken place in the capital area.
In the run-up to the 2019 assembly polls, Jagan Mohan Reddy reassured the public that they are committed to Amaravati as the capital. He also built a house in Tadepalli in Amaravati before the elections and moved in.
Regime Change
Things changed when TDP lost power in 2019 and YSR Congress under US Jagan Reddy came to power. On 17 December, 2019, Chief Minister YS Jagan Mohan Reddy, on the last day of the Assembly session, announced three capitals for Andhra Pradesh.
“If you look at South Africa, there are three capitals there. Perhaps the legislative capital can be placed in Amaravati. The executive capital can be placed in Visakhapatnam and the High Court in Kurnool.” He said that Amaravati needs ₹1.9 lakh crore for construction which the state cannot afford.
In March 2022, however, the Three Capitals Act was repealed. Jagan Reddy though said he was committed to three capitals and that his government will bring in stronger legislation in the future.
Ghost Capital – Amaravati
From 2019 to 2014, the ambitious project was left untouched. Farmers filed petitions in the courts, staged protests demanding continuity of the original plan for Amaravati.
Images of partially constructed buildings and abandoned plots earned Amaravati a reputation of a ‘Ghost Capital.’ Most of the infrastructural projects were stalled or shelved. International collaborations, including with Singapore and Japanese firms, lapsed or scaled down operations.
A 2023 report by the Comptroller and Auditor General (CAG) raised questions about expenditure patterns, inconsistencies in land allotments, and cost overruns in capital works. By 2019, more than ₹15,000 crore had already been spent, with little visible progress
Amravati will empower the vision of ‘Swarna Andhra’.
On 5 March 2022, the Andhra Pradesh High Court said that Legislative Assembly does not have the authority to change the capital. It also imposed a time limit for the construction of Amaravati. The Andhra Pradesh government moved the Supreme Court against this verdict. The case is pending.
On 4 June 2024, the TDP returned to power with the help of the BJP and Jana Sena, and Naidu revived his Amaravati capital dream.
