About 20,000 workers are set to recommence construction on the Greenfield capital project in Amaravati following final approval expected from the State Cabinet during its meeting on March 17.
Minister for Municipal Administration and Urban Development, Ponguru Narayana, stated that work will begin immediately once the Cabinet grants its approval next week, with around 20,000 workers anticipated to be involved in the construction efforts by the following month.
The Capital Region Development Authority (CRDA) of Andhra Pradesh has already approved 59 tenders for various development works valued at ₹37,702 crores. Additionally, tenders have been issued for 73 different projects worth ₹48,012 crores, having received prior clearance from the Cabinet.
On Tuesday, the CRDA sanctioned 59 tenders for projects with a total estimated cost of ₹37,702 crores, and Letters of Intent will be dispatched promptly for these initiatives. Among the 59 projects, 22 fall within the CRDA jurisdiction and are valued at ₹22,607 crores, while the remaining 37 projects from the Andhra Pradesh Development Corporation (ADC) are worth ₹15,095.04 crores.
Furthermore, the CRDA has authorized land allocations for 31 different organizations. The timeline for altering the location of land allocated to 11 additional units has been extended, while the proposal to change the location for two other units has been accepted.
“The total development cost for the capital city of Amaravati is estimated to be around ₹64,000 crores,” the Minister noted, clarifying that public taxes will not fund this initiative. The CRDA holds surplus land of 6,203 acres from farmers, of which 1,900 acres will be designated for various organizations.
The capital city will be constructed using funds generated from either the sale or mortgage of the surplus land. The State Government has already secured a ₹15,000 crores loan from the World Bank and plans to raise another ₹11,000 crores from HUDCO, in addition to ₹5,000 crores from various banks, bringing the total funds to be mobilized to ₹31,000 crores, according to government data.
The Amaravati capital region spans approximately 53,500 acres. The construction of the new capital was initiated by the Telugu Desam Party government between 2014 and 2019 but was halted by the YSR Congress Party government during its tenure from 2019 to 2024.
The current NDA government, led by Chief Minister N. Chandrababu Naidu, has prioritized the completion of the Amaravati and Polavaram projects since assuming office last year.
