Hon’ble Chief Minister

Sri Nara Chandrababu Naidu Garu

Presentation on White Paper of

19TH JUNE 2024

AMARAVATI - PEOPLES CAPITAL

MUNICIPAL ADMINISTRATION & URBAN DEVELOPMENT DEPARTMENT

 MANA NEERU MANA MATTI MANA AMARAVATI

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AMARAVATI – The Creation
 After bifurcation, Andhra Pradesh was left without a
Capital City.
 State government has considered and taken the
recommendations of the Sri K.C. Siva Rama Krishnan
IAS (Retd.) Committee as well as opinions of various
stakeholders.
 Andhra Pradesh State Assembly passed resolution on
03.09.2014 to establish Amaravati as the Capital city
 Amaravati is
― Centrally located
― Planned – liveable city
― Self Financed Project
― Growth Engine

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AMARAVATI – Built on the Land Pooling Model

• The largest land pooling in the world.

• World Bank presented it as a Case Study.
• Ac. 34,400.15 of land given by 29,966 farmers voluntarily.
• Farmers and APCRDA entered into a binding agreement.
• Farmers are paid annuity for 10 years at the rate of Rs. 30,000/Ac for dry and Rs. 50,000/Ac. for wet
• Annual increment is Rs. 3000/Ac & Rs. 5000/Ac.
• For each Acre, farmer was given Returnable plot of 1000 Sq.yd (Residential) + 250 Sq.yd (Commercial) for dry
1000 Sq.yd (Residential) + 450 Sq.yd (Commercial) for wet
• Other Social benefits like loan waiver, skill development, Free Health scheme, Free education, Anna
Canteen, Sanitation, etc.
• Pension for landless families: Rs. 2500/month earlier, now Rs. 5000/month
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AMARAVATI – Wealth Creation Model
No. Land available in Amaravati Extent (Ac.)
1 Trunk Roads and other infrastructure 27,885
2 Returnable plots 11,826
3 Other Purposes 14,037
4 Land available for Monetization 8,274
Total 53,748
• Funds accruing from land monetisation shall be used for construction of the city.
• Increase in the land values due to construction activity
• Wealth generation due to economic activity
• Increase in Tax collection due to construction and service sector
• Increase in the Tax base.
• Multiplier effect on the Economy.
• Resource generation for the wealth distribution to the poor through welfare programs.
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AMARAVATI
• GoI supported by (i) providing Capital Gains
exemption for all sales of land (ii) approved in
principle funds of Rs. 2500 Cr. (released Rs. 1500
Cr.)
• Hon’ble Prime Minister himself came for
foundation stone program.
• Leader of Opposition Jagan Mohan Reddy
supported Amaravati.
• International Governments such as Singapore
supported & provided assistance in planning the
new capital.
• International funding agencies like World Bank,
AIIB, JICA, KfW came forward to support the
project
• National funding agencies like HUDCO, PSU
banks supported the project.
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AMARAVATI – The Planning
 AP Govt. signed an MoU with the
Government of Singapore in December 2014.
 They have prepared three Master plans free
of cost:
(i) Capital Region Concept Master Plan,
(ii) Capital City Master Plan
(iii) Seed Capital Area Detailed Master Plan.

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AMARAVATI – The Vision
• Pioneer Smart City of India
• World Class Standards
• Economic Powerhouse
• High-tech & Knowledge based
Industry jobs
• Globally Competitive
• Reflect Rich Heritage possessed by
the region
• Showcase Unique identity
• Sustainability
• Efficient Management of Resources

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AMARAVATI GOVERNMENT COMPLEX (AGC): Ac. 1575 Amaravati - The Creation

Legislature Building

High Court Building

Secretariat Towers

• AGC is housed with the state of Art buildings such as Legislature, High Court &
Secretariat which were designed with unique and iconic features by engaging the
worlds best architects i.e., Norman + Foster Consortium, UK as Master Architect.
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AMARAVATI - Finance

Purpose Costs (Cr.)

Tier I Infrastructure consisting of city-level roads utilities, village infrastructure & EHV rerouting 19,769

Tier II Infrastructure consisting of last mile connectivity, LPS layouts 17,910

Amaravati Government Complex along with its essential infrastructure including BRTS 14,008

Total Project Cost 51,687

• Tenders were called for a value of Rs. 41,170.78 Cr. out of which all works were grounded and Rs.
4,318.67 Cr. amount was paid and Rs. 1,268.81 Cr. has to be paid as on date.

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AMARAVATI – The Destruction
After Jagan Mohan Reddy garu came to power in 2019
• The 1st act was destruction of Praja Vedika (i) no written orders
(ii) no accountability
• 3 capitals was announced contradicting his assurance during the elections.
― Used BCG and GN Rao Committee, Cabinet Sub-Committee for supporting his destruction

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AMARAVATI – The Destruction
Amaravati Protests
• After the announcement, the farmers who had parted their land for the development of the state started
demonstrations in a peaceful manner. The Government tried to control the protests by using violent methods.
• Hon’ble High Court ordered Government to develop Amaravati in a time bound manner – not implemented.
• The 1,631-days long protests ended on 12 June 2024.

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AMARAVATI – The Destruction
• Systematically weakened and destroyed Amaravati
• All works were stopped
• LA notification for Ac. 1197.30 was withdrawn
• Annuity for 2903 farmers stopped
• Pensions removed for 4422 families
• Rs. 485.32 Cr of budget of APCRDA was lapsed
• Contract of Master Architect for Amaravati Government Complex (AGC) Norman+ Foster was
cancelled
• It was ordered to limit the civil works to Rs. 3000 Cr. out of the balance works Rs. 35.583.5 Cr.
• Minister MA&UD, complained to World Bank and stopped the funding of 300 Mn USD
• State Govt. complained to GoI and stopped Rs. 1000 Cr Grant
• 122 out of 130 land alottees have lost confidence and did not start any activity.

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AMARAVATI – The Destruction

Complaint by the then Minister of MAUD, GoAP.

Complaint by state government to the Finance Minister, GoI.

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AMARAVATI – Happy Nest

• Project Extent: Ac. 14.46, Nelapadu village.

• Project size: 12 towers with 1200 flats.
• Booking: 1187 flats were booked instantly
• Total Cost: Rs. 720.5 Cr.
• Approximate estimated Profit: Rs. 57.37 Cr.

• Estimated Cost (SOR 2024-25) of the project: Rs. 885 Cr.

(Increase in the project Cost)
• Expected loss due to time overrun: Rs. 164.5 Cr.

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AMARAVATI – The effect of Destruction
The effect of the systematic destruction
• Unfinished Buildings and roads got damaged.
• The increase in cost of completing the infrastructure is enormous.
• Credit ratings of the Amaravati bonds got affected negatively
Credit Rating
• Brand Image of AP suffered Agency
Initial Rating Latest Rating

• Confidence of investors was shaken Acuite Ratings

AA-(SO) on C on
31.05.2018 30.11.2023
• AP left without a capital AA-(SO) on BB+ (CE) on
Brickwork Ratings
• Pride & self respect of AP people shattered. 18.05.2018 31.05.2024
A+ (SO) on BB+ (CE) on
• Sharp depreciation in property prices CRISIL Ratings
21.06.2018 15.05.2024
• Wealth generation did not happen
• Migration of people from the state to other states as new job creation stopped
• There was a loss of existing jobs as businesses moved out due to uncertainty

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AMARAVATI – The Lost Oppurtunity
• The opportunity cost of not completing the infrastructure:
i. Cost escalation
ii. Damages to the structure
iii. Cost of demobilisation of men and machinery
iv. loss of jobs for the labour working
v. Funds locked up in incomplete works
vi. loss of revenue (GST & income tax)
vii. Thefts of material
viii. Probable ill effect on the structural stability due to long exposure to elements.

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AMARAVATI – The Destruction

If between 2019 - 2024 if the original plan was implemented,

• A world class capital for the state would be in place
• 50,000 to 1,00,000 people already residing in the capital.
• 7 lakh jobs could have been created during construction
• Rs. 2 lakh Cr. added to GDP
• Rs. 10,000 Cr. of income through state taxes every year with an increment of 15% every year
• Increase in property prices
• Wealth generation across the state

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AMARAVATI – Housing & Building Works status
Physical progress Work done
No; Work Estimate Amount (Cr.)
(%) Value (Cr.)
1 Apartments for MLA/MLC & AIS 700.00 80 444.05
2 Apartments for NGOs 1,355.39 62 522.24
3 Apartments for GO Type I, GO Type II & Group D 975.34 66 408.63
4 Bungalows for Principal Secretaries & Secretaries 274.50 28.5 61.40
5 Bungalows for Ministers & Judges 235.50 27.3 54.78
6 External Infrastructure for Bungalows 131.00 - -
7 Judicial Complex - Phase I 115.33 95 110.64
8 Judicial Complex - Phase II 64.00 85 55.12
9 Advocate Block 23.15 5 3.75
10 Project Office – Phase I 30.00 77 23.09
11 Project Office – Phase II 39.00 77 29.87
12 AGC Infrastructure 1,556.00 6 26.63
13 High Court 860.00 13 47.17
14 GAD Tower 662.00 19 53.26
15 Tower 1 & 2 1,107.00 18 57.45
16 Tower 3 & 4 934.00 20 60.29
17 Legislative Assembly 555.00 - -
Total 9,617.21 1,958.37
Construction Works, Amaravati - May 2019 Vs June 2024
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AMARAVATI – The Way forward
• Today - No capital.
• Investor Confidence is lost.
• Brand Image has suffered.
• This is a case of one person destroying the future of the coming generations.
• We need to introspect if such persons should occupy a public office ever.
• Need to restart the construction activity.
• Restore the investor confidence.
• Rebuild the brand image and resurrect the economy.
• Vision to create a world class capital which boosts the image of the state and improves the
confidence of the people.

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AMARAVATI – The Way forward

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