Amaravati is a small city on the banks of Krishna River in Guntur District of Andhra Pradesh. Ever since Andhra Pradesh was divided into 2 as Telangana State and Andhra Pradesh, Hyderabad was retained as capital city by Telangana and Andhra Pradesh government went without a capital city for almost a year.
With a new political party, Telugu Desam Party coming into power, its party’s chief and also the new Chief Minister of Andhra Pradesh, N. Chandrababu Naidu promised to work on developing a capital city which would be boasting of world class amenities. With no major cities in the state, Chandrababu Naidu decided to develop the capital city from the scratch and that’s when Amaravati was chosen.
Located on the banks of a river and at the centre of the state, Amaravati was a perfect choice chosen for capital city. All the major government departments and offices were transferred to Amaravati and a foundation stone was laid for a new capital city by Prime Minister Narendra Modi and Chief Minister of Andhra Pradesh Chandrababu Naidu.
Investments for developing the capital city was gathered and estimated cost was around 33,000 crores. With investments coming from every corner even World Bank pledged to donate $500 million dollars for the development of the capital city and the construction agreement was given out by the state government to the Singapore based Ascendas-Singbridge and Sembcorp Development Company. The capital city was estimated to be developed in a phase in 7-8 years.
With all the money gathered, development had started to progress until when a new government was formed in 2019 led by YSR Congress party and its leader YS Jaganmohan Reddy. After coming to power, the new Chief Minister YS Jaganmohan Reddy ordered an enquiry into an alleged corruption by the previous TDP Government. A Thorough enquiry stopped all the developments at Amaravati and most of the investors withdrew from investing the money into the capital city’s development including the World Bank.
With all the investments reduced, even the company which agreed to develop the city, Ascendas-Singbridge and Sembcorp Development Company also withdrew from the capital city development project in 2019. With only a 500 crore allotment by the state government there were no other investments left for the development of the city.
In October 2019, Chief Minister YS aganmohan Reddy came with a plan of developing 3 capital cities for the state i.e., a Legislative Capital, a Judicial Capital and an Executive Capital. With Andhra Pradesh Legislative Assembly having YSR Congress MLA’s in majority, the Chief Minister decided to pass a bill.
A bill stating that the Andhra Pradesh should have 3 capitals, Amaravati as a Legislative Capital, Vishakapatnam as an Executive Capital and Kurnool as Judicial Capital was passed on 20th January, 2020 morning and was easily passed by the Andhra Pradesh Legislative Assembly. Chief Minister has ordered Urban Development Authority to oversee the development of three capital cities simultaneously and scrap extra land allotted during the development of capital city during TDP’s rule.