Amaravati: The Andhra Pradesh coalition government has significantly increased funding for Amaravati’s capital region, aiming to restart halted construction projects affected by what they describe as destructive policies under the previous YSR Congress Party (YSRCP) administration. The latest budget allocates Rs 3,445.33 crore to Amaravati, with Rs 3,000 crore designated for core infrastructure development. Additionally, Rs 400 crore is earmarked for annual lease payments to farmers who gave their land for the capital. There is also an allocation of Rs 32 crore for the Cities Challenge project under the Smart Cities initiative and Rs 13.33 crore to enhance the High Court facilities.
This budget marks Amaravati’s prominent reappearance after five years of limited capital-related allocations. The coalition government aims to complete the capital construction within three years and has secured substantial financial support. The central government has committed its assistance, while the World Bank and the Asian Development Bank (ADB) have facilitated Rs 15,000 crore in loans. Additionally, HUDCO has agreed to provide Rs 12,000 crore, addressing financial gaps.
Finance Minister Payyavula Keshav, in his budget speech, stated that Rs 15,000 crore in loans from the World Bank and ADB would be directed toward the Capital Region Development Authority (CRDA). The budget has introduced a special allocation head to channel these funds, with an immediate allocation of Rs 3,000 crore. With four months left in the fiscal year, the allocated funds are expected to be sufficient to commence priority capital projects.
Preparations are underway for tendering major projects in Amaravati by the end of January. Key infrastructure projects, estimated at Rs 50,000 crore, include main roads, flood control channels, reservoirs, utility ducts, residential layouts for farmers, and government buildings like the Assembly, High Court, Secretariat, and departmental offices.
The government also aims to resolve delayed payments to farmers for annual land leases, which were pending under the YSRCP administration. With a Rs 400 crore budget provision, the coalition has ensured timely lease payments, including arrears, to Amaravati farmers this fiscal year. Furthermore, under the Smart City Project, Rs 32 crore has been allocated for modern infrastructure in surrounding villages, allowing these areas to progress alongside Amaravati.
