Promises of free education, healthcare, and employment generation remain unfulfilled. Assigned lands belonging to marginalised communities have not received equitable compensation packages.
Published May 01, 2025 | 2:00 PM ⚊ Updated May 01, 2025 | 2:00 PM
Amaravati capital city design by previous TDP government. (Supplied)
Synopsis: Even 10 years after Telangana was bifurcated, Andhra Pradesh still lacks a developed capital city. Successive governments, the state and the Union, gave nothing but promises. On 2 May, the prime minister must announce grants, not loans, to fund Amaravati’s development. Empty promises and symbolic gestures, such as bringing soil and water, as in 2015, will no longer suffice.
Prime Minister Narendra Modi is set to visit Amaravati to lay the foundation stone, inaugurate, and dedicate development projects worth over ₹58,000 crore to the nation on 2 May 2025. This marks a significant moment for Andhra Pradesh’s capital, which has languished for a decade since its initial foundation ceremony on 22 October 2015.
Back then, the people of Andhra Pradesh held high hopes for central funding to transform Amaravati into a world-class capital. Instead, the prime minister brought “a pot of water and a handful of soil” from Delhi, leaving the state’s aspirations buried in disappointment. Nearly 3,475 days later, the Union government’s neglect and indifference towards Amaravati and Andhra Pradesh remain a festering wound.
In the 2014 election campaign, Modi personally promised the people of Andhra Pradesh a capital that would rival Delhi. The Andhra Pradesh Reorganisation Act, 2014, under Section 94(3), mandates the Union government to provide special funds for constructing essential infrastructure, including the Raj Bhavan, Assembly, and Secretariat.
The responsibility for building the capital lies squarely with the Union government. Between 2014 and 2019, the TDP-BJP state government submitted reports to the Union government estimating a need for ₹42,000 crore for Amaravati’s development. Yet, in the past decade, the Union has disbursed a mere ₹1,500 crore, a paltry sum that underscores its apathy.
The YSRCP government, which ruled the state from 2019 to 2024, further crippled Amaravati by proposing a nebulous “three capitals” plan, effectively rendering the capital project rudderless.
In collusion with the Union government, the YSRCP left Andhra Pradesh without a functional capital. Over 300 acres were allocated for more than 40 central government institutions and offices in Amaravati, yet most have neither taken possession of the land nor signed agreements. A handful of institutions have merely constructed boundary walls, leaving the sites dormant.
Had these central offices been developed, they could have spurred some progress in Amaravati, creating jobs and economic activity. The derelict state of these allocated lands is a stark reflection of the neglect by the Union government and by Modi.
However, the incumbent TDP-Jana Sena-BJP coalition government has brought renewed hope, with tenders being called for capital development projects.
Chief Minister N Chandrababu Naidu has estimated that ₹1 lakh crore is required for Amaravati’s completion. To this end, the state is securing loans: ₹13,600 crore from the World Bank and the Asian Development Bank, ₹11,000 crore from HUDCO (Housing and Urban Development Corporation), and ₹5,000 crore from a German agency, totalling ₹31,000 crore in approved loans.
Additional borrowings are reportedly in the pipeline. However, the Union government’s contribution as a grant is a meagre ₹1,400 crore. For the BJP-led Union government to take pride in merely facilitating loans is not just inadequate but shameful.
In the past, the World Bank had promised a loan for Amaravati, but later withdrew it. The current loan, repayable over 29 years in Japanese currency with interest, is subject to the World Bank’s phased approval based on ongoing satisfaction with project progress. This arrangement places a heavy financial burden on the state and its people.
Can Amaravati’s development rely solely on such loans? The World Bank has imposed stringent conditions, including private-sector involvement in managing water supply, drainage, and other infrastructure, as well as raising funds through bonds and other private entities.
These conditions, typical of World Bank loans, risk shifting the debt burden onto the people of Andhra Pradesh, particularly those in Amaravati. While some coalition leaders optimistically believe the Union government will bear the loan repayment, it stated in Parliament that it is only facilitating loan approvals, offering no commitment to cover the debt.
The so-called “double engine” or “triple engine” government, as Naidu and Deputy Chief Minister Pawan Kalyan describe their coalition, has failed to exert pressure on the Union government. Why have successive state governments, including the current one, been unable to hold the Union government accountable? As partners in the NDA, why are TDP and BJP leaders not demanding clarity and action?
On 2 May, the prime minister must announce grants, not loans, to fund Amaravati’s development. Empty promises and symbolic gestures, such as bringing soil and water, as in 2015, will no longer suffice. A clear roadmap is needed, including a commitment to complete central government office constructions within six months.
The Union government must also address its decade-long neglect by fulfilling promises of special status for Andhra Pradesh and implementing the bifurcation assurances outlined in the Reorganisation Act. Special status would attract industries not only to the capital but across the state, generating employment and economic growth.
Amaravati’s journey has been marred by unfulfilled promises. In 2014, 34,000 acres were pooled from farmers under a landmark land pooling scheme, designed to protect farmers, workers, and local communities. The TDP government (2014-19) made little progress, relying on temporary structures.
The YSRCP regime (2019-24) systematically dismantled Amaravati, failing to pay farmers’ annuities regularly and neglecting to develop and allocate promised plots within three years, as mandated by law. The capital pension scheme for 4,318 landless poor was discontinued, and the pension amount has not been revised in eight years.
Promises of free education, healthcare, and employment generation remain unfulfilled. Assigned lands belonging to marginalised communities have not received equitable compensation packages.
Housing for locals has been haphazard, and sanitation workers in Amaravati earn ₹12,000 per month compared to ₹21,000 in other Andhra Pradesh towns with irregular salary disbursements.
The neglect extends beyond funding. The state has struggled to secure loans, leaving Amaravati in limbo. Of the 53,748 acres acquired, including 34,390 acres from farmers and government lands, efforts are underway to acquire an additional 4,181 acres from 25 villages.
Meanwhile, Minister P Narayana’s announcement to acquire another 44,000 acres in a second phase, bringing the total to nearly 1 lakh acres, has sparked outrage among farmers who surrendered land a decade ago.
“We gave our land 10 years ago and are still waiting for justice. What will happen to our plots if more land is acquired?” they asked. Landless workers, now migrating to nearby villages for work due to the lack of agricultural activity, fear further acquisitions will leave them with no livelihood options.
Infrastructure development, too, has faltered. While a new bypass road connects Amaravati to Gannavaram airport, farmers whose lands were acquired for the airport’s expansion still await fair compensation. The Capital Region Development Authority (CRDA), spanning 8,352 sq km across 58 mandals in Krishna and Guntur districts, has master plans for industries and development, but these remain largely on paper.
The government must answer these concerns and shift focus from centralised development to decentralised growth, prioritising the development of already-acquired lands over new acquisitions.
The promise of a “people’s capital” rings hollow when leaders turn to multinational corporations and Singapore-based firms for inspiration. Amaravati’s construction must be transparent, free from corruption, and aligned with the aspirations of Andhra Pradesh’s people. A robust legal framework is needed to prevent further controversies and ensure systematic development. The state must also press the Centre for funds and address the broader needs of Andhra Pradesh, including special status and bifurcation promises.
As Modi arrives in Amaravati, the people of Andhra Pradesh deserve more than ceremonial gestures. They demand accountability, sincerity, and a capital that reflects their sacrifices and dreams. The time for rhetoric is over; the time for action is now.
(Views are personal. Edited by Muhammed Fazil.)
