Amaravati to become India’s largest state capital city?

The Andhra Pradesh Capital Region Development Authority (APCRDA) has approved an ambitious land acquisition plan that will transform Amaravati into the largest capital city in India, both in scale and vision.

As part of the second phase of the capital project, the state government aims to acquire an additional 40,000 to 45,000 acres, bringing the total area close to one lakh acres.

The decision was made during the 48th CRDA meeting chaired by Chief Minister N. Chandrababu Naidu on Monday, signaling a bold revival of Amaravati after years of stagnation under the previous YSRCP regime’s three-capital plan.

A vision of scale

Municipal Administration and Urban Development Minister P. Narayana confirmed that 36,000 acres have already been offered by farmers through the Land Pooling Scheme (LPS) for this phase, with discussions ongoing for the remaining land.

Combined with the 54,000 acres pooled during the first phase in 2015—contributed by 29,966 farmers from 29 villages—Amaravati is poised to become an unprecedented greenfield capital city.

The expansion supports a range of mega-infrastructure projects:

1) A 5,000-acre international airport, modeled after Hyderabad’s Shamshabad Airport

2) A 2,500-acre smart industrial township

3) A 2,500-acre world-class sports city

4) Integration of nearby urban areas including Mangalagiri, Tadepalli, Guntur, and Vijayawada, into a single, sprawling capital metropolis.

Funding and economic momentum

The Amaravati project has received a substantial financial push:

1. Rs 6,000 crore allocated in the FY26 state budget
2. Rs 2,100 crore already sanctioned for Q1
3. 15,000 crore pledged by the Central Government
4. 11,000 crore loan secured from HUDCO

Land values in the capital region have surged dramatically, with prices reaching Rs 20–30 crore per acre. The already pooled 34,000 acres are estimated to be worth Rs 5 lakh crore, highlighting Amaravati’s immense economic potential.

Questions

But opposition leaders questioned the government’s greed. Bahujan Samaj Party (BSP) state coordinator J. Purnachandra Rao questioned the necessity of such extensive land acquisition, particularly for projects like the international airport. He alleged that the move benefits corporate interests over farmer welfare.