The cost of constructing Amaravati, the capital city of Andhra Pradesh, including the development of infrastructure facilities, has been estimated at ₹64,271 crore.
This was announced in the state assembly by Minister for Municipal Administration and Urban Development, Ponguru Narayana.
During the question hour on Tuesday, Narayana stated that the capital city would be fully developed within three years.
He detailed that ₹64,721.48 crore would be required for the construction of houses, government buildings under the Amaravati Government Complex (AGC), development of trunk infrastructure, and implementation of the Land Pooling Scheme (LPS) infrastructure.
To fund Amaravati’s construction, the government plans to secure resources from multiple sources, including loans from multinational agencies and banks, grants from the central government, and revenue from land sales and leasing.
Narayana confirmed that the World Bank and Asian Development Bank (ADB) are collectively providing a ₹13,400 crore loan for the city’s development. Additionally, KFW Bank will extend a ₹5,000 crore loan, and HUDCO will grant ₹11,000 crore within the next few days. The Central Government is expected to provide ₹1,560 crore in grants.
The remaining funds will be raised through land sales within Amaravati, leasing agreements, and low-interest borrowings from national and international markets.
Narayana revealed that 106 government and private organizations are ready to set up offices in Amaravati. The tender process has been completed, and authorities are currently securing approvals to issue Letters of Agreement for the commencement of construction.
The government’s infrastructure development plans include completing trunk roads of 165 feet and 185 feet width within two years, while LPS roads are expected to be finished within three years. Government office buildings, which are already more than halfway constructed, will be fully completed within one and a half to two years.
The Assembly, Secretariat, and High Court buildings are expected to be completed within three years.
With these developments, the government remains committed to transforming Amaravati into a fully functional capital city within the stipulated timeframe.
