Andhra cabinet clears proposal for inclusion of Amaravati as the name of the capital in the state bifurcation act

The cabinet approved a proposal to allot 191.64 acres of land to the NREDCAP on a lease basis for establishing a 1000 MW Pumped Hydro Storage Power Project by Adani Green Energy Limited.

Published May 09, 2025 | 9:36 AMUpdated May 09, 2025 | 9:36 AM

AP Cabinet meeting

Synopsis: The Andhra Pradesh Cabinet approved a proposal to request the Union government to amend the reorganisation act to designate Amaravati as the capital of the state. The decision was evidently made to prevent any future attempts to shift the capital from Amaravati.

The Andhra Pradesh Cabinet approved a proposal to request the Union government to amend the Andhra Pradesh State Reorganisation Act, 2014, to designate Amaravati as the capital of the state, instead of merely referring to it as the “Andhra Pradesh capital.”

The cabinet meeting, chaired by Chief Minister N Chandrababu Naidu at the state secretariat in Velagapudi in Amaravati on Thursday, 8 May, sought an amendment to Subsection (2) of Section 5 of the Act for this request to take effect.

The decision was evidently made to prevent any future attempts to shift the capital from Amaravati, though no specific reason for the decision was provided.

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Approves land allotment

In another decision, the cabinet approved a proposal to allot 191.64 acres of land in K Bommepalli, Kondapur Mandal in the YSR district, to the New & Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) on a lease basis for establishing a 1000 MW Pumped Hydro Storage Power Project by Adani Green Energy Limited.

The lease rate is ₹31,000 per acre per year, with a five percent increase every two years for the project duration (40 years operational + six years construction, totalling 46 years).

The cabinet also approved the formation of the Jalaharati Corporation as a 100 percent state-owned special purpose vehicle under the Companies Act, 2013, with a Board of Directors.

This decision was taken apparently to accelerate the Polavaram-Banakacharla Godavari-Krishna-Penna river-linking project, which is a priority for the Chief Minister.

Another decision taken by the cabinet related to transferring 1.95 acres of land in Kurnool Rural Mandal, B Thandrapadu Village, to Indian Oil Corporation Limited for establishing an LNG Hub for the City Gas Distribution Project, upon payment of ₹61,23,516 per acre, according to the market value.

The cabinet also approved a proposal to transfer 18.70 acres of government land under Survey No. 101/1 in Annavaram Village of Visakhapatnam district to the Andhra Pradesh Tourism Authority for constructing a beach resort and convention centre.

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Other decisions

The cabinet also approved a proposal to authorise the Andhra Pradesh Capital Region Development Authority (APCRDA) Commissioner to approve the lowest bids for four projects worth ₹1,732.306 crore, issue contracts to L1 bidders, and implement decisions approved by the APCRDA.

Other decisions include:

  • Authorising Amaravati Development Corporation Limited, Vijayawada, to approve L1 bids for two packages:
    (a) Package XXXXI E15 road expansion to Old National Highway, Mangalagiri (₹72.79 crore), and
    (b) Package XXXXII E13 road expansion to National Highway-16 (₹400.56 crore).
  • Administrative sanction of ₹560.57 crore for Package XXXXIII under the Amaravati Capital City Development Programme, funded by the World Bank and Asian Development Bank, for design, construction, and maintenance (DBO) works, including additional ancillary works.
  • Administrative sanction of ₹494.86 crore for Package XXXXIV under the Amaravati Capital City Development Programme, funded by the World Bank and Asian Development Bank, for design, build, and operate (DBO) works, including ancillary works, SCADA, AI-based water management system (Digital Twin), and five years of maintenance for the entire water supply system (up to pumping water to WTP) in Amaravati.
  • Administrative sanction of ₹593.03 crore for Package XXXXV for the third-phase expansion of E3 Road, including a 6-lane elevated corridor with an interchange connecting to National Highway-16, bridges, underpasses, and utilities. This will enhance the road network in the Amaravati capital city area and improve transportation facilities in nearby regions.
  • Increasing the compensation for land acquisition by the Andhra Pradesh Maritime Board (APMB) for an industrial hub in Ravooru Village of Nellore district, from ₹16 lakh to ₹20 lakh per acre.
  • Transferring lands, acquired in the process of acquisition, or to be acquired by the APMB, including government salt lands, to the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) for industrial purposes near ports.

(Edited by Muhammed Fazil.)

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