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The Andhra Pradesh government has cleared 59 infrastructure projects worth INR 37,702 crore for Amaravati's development, with work set to begin after Cabinet approval which is expected to come this week. An additional INR 16,871 crore in tenders will soon be invited, bringing the total investment to INR 64,000 crore. Key funding sources include INR 11,000 crore from HUDCO, INR 5,900 crore from the World Bank, and INR 5,000 crore from Germany's KfW bank. The projects focus on roads, bridges, and urban infrastructure, positioning Amaravati as a climate-resilient, inclusive capital with sustainable growth and employment opportunities for 20,000 people.
The Andhra Pradesh government is advancing the development of its new capital city, Amaravati, with the Capital Region Development Authority (CRDA) approving 59 projects totaling INR 37,702 crore. These initiatives are set to commence following the Cabinet's approval, and are expected to create employment for approximately 20,000 individuals.
The 59 approved projects are divided between the CRDA and the Amaravati Development Corporation (ADC). Specifically, 22 projects under the CRDA are valued at INR 22,607 crore, while 37 projects under the ADC amount to INR 15,095 crore. These projects encompass various infrastructure developments, including the construction of an NTR statue, an iconic bridge, connecting roads to the national highway, and the Karakatta road along the Krishna riverbank.
In addition to these approved projects, tenders for 19 more initiatives worth INR 16,871 crore are expected to be invited by the end of the month. This brings the total estimated investment for Amaravati's development to approximately INR 64,000 crore.
To support these extensive development plans, the state government has secured funding from various sources. The Housing and Urban Development Corporation (HUDCO) has agreed to provide a loan of INR 11,000 crore for Amaravati's infrastructure projects. Additionally, Germany's KfW development bank has committed INR 5,000 crore, and the central government has allocated INR 1,500 crore for the capital's development.
The World Bank has also shown support by approving an $800 million (approximately INR 5,900 crore) loan for the Amaravati Integrated Urban Development Program. This program aims to establish Amaravati as a well-managed, climate-resilient growth center, generating jobs and improving the lives of its residents, especially the most vulnerable.
The Asian Development Bank (ADB) is contributing to Amaravati's development through the Inclusive, Sustainable, and Resilient Amaravati Capital City program. This initiative supports the city's growth as a regional hub, boosting economic prospects and improving living conditions for the state's residents.
The Andhra Pradesh government has allocated INR 6,000 crore in the 2025-26 budget specifically for Amaravati's infrastructure expansion projects. This allocation underscores the state's commitment to developing the capital city without imposing additional financial strain on the state's budget.
The development of Amaravati is not only focused on infrastructure but also on creating a sustainable and inclusive urban environment. The city's master plan includes green spaces, efficient public transportation, and affordable housing to ensure a high quality of life for all residents.
The comprehensive development strategy for Amaravati reflects the government's dedication to building a modern capital that meets the aspirations of its people. By securing substantial investments and focusing on inclusive growth, Amaravati is poised to become a model city that balances economic development with environmental sustainability and social equity.
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