Andhra Pradesh secures ₹40,887 crore for developing Amaravati, eyes additional funding

APCRDA is accelerating construction to demonstrate tangible progress to lenders and unlock both committed and additional funds | Photo Credit: K V S Giri

The Andhra Pradesh Capital Region Development Authority (APCRDA) has secured ₹40,887 crore so far for the development of Amaravati – the State’s greenfield capital city.

“We have no shortage of funds to complete the capital as per the State government’s schedule,” said Vijaya Ramaraju, Commissioner, APCRDA, during an interaction.

The authority has tied up a multilateral loan of ₹15,000 crore from the World Bank and the Asian Development Bank (ADB), facilitated by the Centre. Additionally, it has lined up ₹7,500 crore from NaBFID, ₹11,000 crore from HUDCO and ₹7,387 crore from Nabard.

“We still need to secure about ₹43,000 crore. A proposal has been submitted to the World Bank and ADB for an additional ₹15,000 crore,” Ramaraju said. Teams from both institutions recently visited Amaravati to review progress and discuss further funding with the State government, he added.

APCRDA is accelerating construction to demonstrate tangible progress to lenders and unlock both committed and additional funds. “With construction gathering pace, we are in a position to showcase progress and access further financing,” he said.

Alternative funding plan

The authority is also pursuing alternative financing options, including land monetisation through public-private partnerships (PPPs), outright land sales and bond issuances in domestic and international markets. It is also tapping Central grants under relevant schemes and seeking support from the State government through special grants.

“By December this year, all major road works and residential buildings will be completed, paving the way for increased investments and economic activity,” he said.

Work is currently underway on 34 arterial and sub-arterial roads with utility corridors spanning over 320 km. Additionally, last-mile connectivity of over 1,200 km is being developed across 13 zones. These include cycle paths, footpaths and integrated underground utilities.

Villages to co-exist

The capital city plan envisages the coexistence of existing settlements and new urban development. All 26 villages in the Amaravati capital area have been designated as “R1 Zone” and retained, wherever feasible, in the master plan.

Land pooled under the scheme is being developed as per a comprehensive plan covering residential, commercial and recreational zones, with a focus on creating a modern capital with world-class infrastructure.

According to APCRDA data, farmers who contributed land under the Land Pooling Scheme have been allotted about 70,000 returnable plots.

They have received ₹1,800 crore as annuity and ₹618 crore as pensions. Additionally, 5,024 housing units have been provided to the poor, along with access to healthcare and education facilities.

Published on April 17, 2026