Home News AP sings swansong for Amaravati Capital City Project

AP sings swansong for Amaravati Capital City Project

Andhra Pradesh government performed the last rites of Amaravati Capital City Project last week by abolishing the Andhra Pradesh Capital Region Development Authority (APCRDA). Amaravati Capital City project, an ambitious project of the erstwhile Chief Minister of Andhra Pradesh, N Chandrababu Naidu, saw its fortunes changing when the government changed after the state Assembly elections last year. The new Chief Minister was not in favour of the project and had decided to scrap the master plan and move the administrative capital to Visakhapatnam in January this year. As per the decision taken by the state government, Andhra will have three separate capitals – the executive capital at Visakhapatnam, legislative capital at Amaravati and a judicial capital.

On Saturday, the state government issued orders abolishing APCRDA, thereby de-notifying Amaravati as the capital city of Andhra Pradesh. In place of APCRDA, the government order created the Amaravati Metropolitan Region Development Authority (AMRDA). As a result of the new notification, all the areas within the jurisdiction of the hitherto capital region have now come under AMRDA. Further, all the assets, liabilities, agreements and concessions, which were handled by the APCRDA, will now be vested with the new authority.

Meanwhile, with the Andhra Pradesh government passing orders de-notifying Amaravati as the capital region, farmers of the hitherto capital area yesterday moved the high court challenging the formation of three capital cities for the state.

The original master plan of Amaravati was prepared by Surbana Jurong who had proposed to create a world-class city 10 times the size of Singapore with nine theme cities—Government City, Justice City, Finance City, Knowledge City, Electronics City, Health City, Sports City, Media City and Tourism City. It had also proposed to develop four expressways and one inner ring road and 27 townships in an overall area of 50,000 acres.

Amaravati capital city project had received a major setback when World Bank had withdrawn from the project. The capital city project had a financial tie up with the World Bank and other multilateral agencies, along with contribution from the Central and State governments. Meanwhile, the Shanghai-based New Development Bank has sanctioned a Rs 6,000 crore loan for the project. Other funding sources include Amaravati bonds worth Rs 2,000 crore, funding from HUDCO, and state and central government allocations.

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