In a sharp contrast to the limping realty sector in most parts the country, the people’s capital of Amaravati in Andhra Pradesh is envisioned in a grand scale. Not just that, the city of Amaravati will be a growth engine, contributing to the development of the State’s economy, according to the Budgetary statement by Finance Minister Payyavula Keshav.
Andhra Pradesh Budget LIVE updates: State Govt presents ₹3.2 lakh crore Budget for 2025-26
“I’m happy to announce that we are ready to start the Amaravati project on a grand scale. Our aim is to develop Amaravati not only as a city, but also a growth engine leading the development of the State,” said the Finance Minister Mr. Keshav while presenting the Budget 2025-26 at Andhra Pradesh Assembly on Friday (February 28, 2025). “Just as Mumbai is crucial for Maharashtra, Hyderabad for Telangana to drive growth, we have to build Amaravati to drive Andhra Pradesh’s economy forward,” he added.
The Finance Minister further stated that the A.P. Government is working with PM Narendra Modi to develop Amaravati into an economic powerhouse such as Hyderabad and Mumbai, with world class infrastructure, investments and employment opportunities. The financing for Amaravati is not provided directly from State resources but secured through the government of India with assistance from World Bank (WB), Asian Development Bank (ADB) and HUDCO.
Amaravati is a dream project envisioned by Chief Minister N. Chandrababu Naidu who wants to replicate the Hyderabad/Cyberabad growth story he scripted way back in late 1990s.
₹31,500 crore secured
Sources in the government reveal that about ₹31,500 crore has been secured so far through WB, ADB and HUDCO. “We can see over 20,000 people working in different projects in the capital city within few days from now. Our immediate aim is to first complete the unfinished structures of judges quarters, those allocated for AIS officers and other government officials. The iconic structures, Happy Nest and other buildings will also come up soon,” said a top official in the Capital Region Development Authority.
World Bank Assistance
The fact sheet of the World Bank states that the Government of India has requested the World Bank to develop Amaravati as a new economic hub and State Capital of Andhra Pradesh as fast-urbanising India to model the planning of an inclusive, climate-resilient city.
The fact sheet further states, “Situated in a well-connected region along India’s East Coast Economic Corridor, Amaravati will be part of a broader metropolitan region that includes two cities, Vijayawada and Guntur. The government has prepared the masterplan for a 217 sq km city to accommodate 3.5 million people by 2050. Currently, about 1,00,000 people live in the Amaravati area.”
₹5,000 crore investment, 50,000 jobs
The World Bank, while acting as a catalyst, aims to garner more than $600 million (nearly ₹5,000 crore) investment in private sector in the first phase of development. In the process, the economic opportunities in construction, agro-processing, clean manufacturing and services can potentially create more than 50,000 jobs over the coming five years.
