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Construction work has finally resumed on the Amaravati capital city project in Andhra Pradesh after a five-year hiatus. Estimated to cost INR 65,000 crore, the project envisions a world-class urban centre designed by UK-based Foster and Partners. With financial backing from the Indian government, international lenders, and HUDCO, the development is planned to be completed in phases, with Phase-1 targeted for completion in the next three years. The city is expected to generate 1.5 million jobs, house 3.5 million residents, and contribute USD 35 billion to GDP by 2050.
After remaining stalled for nearly five years, construction work has restarted on the ambitious Amaravati capital city project in Andhra Pradesh, with renewed vigour and massive financial backing. The project, estimated to cost INR 65,000 crore, is being positioned as a world-class urban centre along the Krishna River, between Vijayawada and Guntur. Advertisement
Often described as a "people's capital," Amaravati was envisioned to attract skilled migrants, global investors, businesses, and professionals. The city's master plan, prepared by the globally renowned UK-based architecture firm Foster and Partners, spans an area of 217.23 square kilometres. Drawing inspiration from leading global cities such as Singapore, Amsterdam, and Tokyo, the city is planned to feature a strong urban design framework that encourages inclusivity, sustainability, and smart infrastructure.
The development is expected to be executed in phases. The first phase, covering key government, civic, and residential infrastructure, is planned to be completed over the next three years. Once completed, the city is projected to accommodate a population of 3.5 million, create 1.5 million employment opportunities, and contribute USD 35 billion to India's GDP by the year 2050.
Funding support for the project has significantly improved. The Indian government committed INR 15,000 crore towards the city's construction in 2024. Additionally, international financial institutions such as the World Bank and Asian Development Bank have sanctioned USD 800 million each. Housing and Urban Development Corporation (HUDCO) has extended a loan of INR 11,000 crore, while talks are ongoing with German bank KfW for an additional INR 5,000 crore in funding.
The project had witnessed a complete halt between 2019 and 2024, following a change in the state's political leadership. However, with the return of N. Chandrababu Naidu as Chief Minister, the initiative has been revived with fresh momentum. His administration has invited Prime Minister Narendra Modi to perform the ground-breaking ceremony for the resumed works, although the date for the ceremony has not yet been finalised.
The re-initiation of the Amaravati project is seen as a symbolic and strategic move, reinforcing the vision of Andhra Pradesh as a forward-looking and economically progressive state. It also marks an attempt to restore investor confidence and re-establish momentum in large-scale infrastructure development that had slowed in recent years.
The involvement of international lenders and renewed state support suggests a more grounded approach this time around. As work progresses, Amaravati will not only serve as a new administrative capital but may also emerge as a model for future greenfield cities in India.
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