For nearly a decade, the ambitious dream of building Amaravati — a futuristic greenfield capital for Andhra Pradesh — stood still, caught in political limbo. In 2025, that dream breathes life again. Spearheaded by Chief Minister Chandrababu Naidu, the Amaravati capital project has found new momentum with robust funding, a strong legal foundation, and revived public and international support.
This article dives deep into the past, present, and future of Amaravati — a city born from history, designed with vision, and powered by collective sacrifice.
Why Amaravati Matters: More Than Just a Capital
Amaravati is more than a political or administrative hub. It symbolizes Andhra Pradesh’s aspirations post-bifurcation in 2014. When Telangana was carved out of united Andhra Pradesh, Hyderabad was declared the joint capital for 10 years — but would eventually belong solely to Telangana. This compelled the residual Andhra Pradesh to find and build a new capital from scratch.
Chandrababu Naidu, who was the chief minister at the time, chose Amaravati — nestled on the banks of the Krishna River — for its central location, rich cultural roots, and connectivity to Guntur and Vijayawada. Approved in 2014 and named in 2015, Amaravati was envisioned as a world-class capital city inspired by cities like Amsterdam, Singapore, and Tokyo.
A City with Ancient Roots
The modern identity of Amaravati traces back to the Satavahana dynasty (circa 225 BCE), when it served as the eastern capital of their empire. Known then as Dhanyakataka, it was also a major Buddhist centre. According to legends, Gautama Buddha himself visited the region.
Later, Raja Vasireddy Venkatadri Naidu — a powerful zamindar in the 18th century — moved his capital here after becoming disillusioned with British rule. He rebuilt Amaravati as a cultural hub, reinforcing its symbolic value.
Today, Amaravati also derives spiritual significance from the Amareswara Temple — one of the Pancharama Kshetras — making it a name rooted in mythology and history.
Land Pooling: A Farmer-Led Urban Revolution
Unlike other mega urban projects that often rely on forced land acquisition, Amaravati’s development took a different path through a Land Pooling Scheme (LPS) initiated in 2015.
Under this scheme:
-
Around 33,000 acres of land were voluntarily pooled from over 27,000 farmers.
-
For every acre of wetland given, a farmer would receive 1,000 sq. yards of residential and 450 sq. yards of commercial plots.
-
Dry landowners received 250 sq. yards of commercial plots.
-
Farmers were promised annual compensation of ₹50,000 (wetland) and ₹30,000 (dry land) for 10 years, with a 10% increment every year.
-
Landless agricultural workers were assured a monthly pension of ₹2,500 for 10 years.
However, after the YSR Congress Party took power in 2019, CM Jagan Mohan Reddy shelved the Amaravati project in favour of a three-capital plan — with executive functions moved to Visakhapatnam, judiciary to Kurnool, and legislature in Amaravati.
The Farmer Protests: A Struggle for Dignity
The decision to dilute Amaravati’s role sparked widespread protests, especially from farmers who had given up their lands in good faith. For over 1,600 days, they held rallies and dharnas demanding that Amaravati remain the sole capital.
The High Court ruled in favour of the farmers in 2022, declaring Amaravati as the rightful capital. Still, development remained stalled until 2024, when the TDP-led NDA government returned to power with Naidu at the helm.
Rebirth of a Capital: 2024 Onwards
The revival of Amaravati officially began after June 2024, with renewed focus and international support.
Key developments:
-
PM Narendra Modi is scheduled to relaunch the project on May 2, 2025.
-
The Asian Development Bank (ADB) committed USD 788.8 million in loans.
-
The World Bank approved USD 800 million for infrastructure, green spaces, and climate-resilient systems.
-
The 2024-25 AP budget allocated ₹15,000 crore exclusively for Amaravati.
-
Farmers' pensions and annuities were restored, and loans were facilitated for their allocated plots.
ADB projects that USD 3.64 billion will be invested in Phase I of development through 2029.
Challenges Ahead: Costs, Infrastructure, and Speed
Years of delay have come at a steep price:
-
Estimated project costs have surged from ₹51,208 crore in 2015 to ₹64,910 crore in 2025.
-
Inflation and damaged infrastructure have inflated costs by 40–45%, according to Minister P. Narayana.
-
Roads, buildings, and materials now cost 25%–55% more.
-
Investor confidence needs rebuilding after years of uncertainty.
To manage these challenges, Amaravati’s development is now aligned with Results-Based Lending (RBL) — ensuring funds are disbursed only after achieving tangible milestones.
Looking Ahead: The Vision of Amaravati 2.0
The revived Amaravati is being reimagined as a climate-resilient, digitally smart, citizen-first capital city.
Key components:
-
Green corridors and flood-resistant drainage systems
-
Low-carbon public transport
-
State-of-the-art governance buildings and housing
-
Dedicated zones for education, health, and innovation
-
Livelihood hubs to generate local employment
More importantly, Amaravati is not just a city being built — it is a trust being rebuilt with its people, especially the farmers who sacrificed their land and peace for the larger public good.
Conclusion: Amaravati as a Symbol of Andhra’s Future
The revival of Amaravati is not merely about roads, buildings, and budgets. It is a people’s movement reborn with purpose — blending ancient legacy with futuristic planning. As construction picks pace and funding flows, Amaravati stands once again as a beacon of aspiration for the people of Andhra Pradesh.
If delivered as promised, it could redefine urban development in India — not just in terms of infrastructure, but in showing how inclusive planning, sustained vision, and public trust can shape a better tomorrow.