Amaravati Not Viable; Call for Time-Bound Plan for Capital, Rayalaseema

Rayalaseema Intellectuals Forum Coordinator M. Purushottam Reddy has called for a public debate on the financial viability of Amaravati, questioning the feasibility of building a debt-driven mega capital in view of the state’s current economic condition.

He cautioned that several planned cities globally, including Noida and Lavasa, have struggled due to inadequate population growth and sustainability concerns, raising doubts about Amaravati’s long-term success. Building a capital from scratch, he argued, is economically risky, whereas strengthening and integrating existing urban centres would be a more practical and viable approach.

Reddy also accused certain sections of distorting historical facts related to Amaravati, clarifying that Kurnool was designated as the capital under the Sri Bagh Pact during the formation of the state.

He urged the government to present a clear, time-bound roadmap not only for the capital city but also for key irrigation projects in Rayalaseema, such as Handri-Neeva and the Rayalaseema Lift Scheme, which together require an estimated ₹40,000 crore.

Highlighting the financial implications, he said that developing basic infrastructure in Amaravati alone could cost around ₹2 lakh crore. Additionally, the government would have to continue paying annual annuities to farmers until developed plots are handed over, adding to the long-term fiscal burden. He further pointed out that loans raised for the project would carry substantial interest obligations, significantly increasing the debt over time.

Citing examples like Chandigarh and Naya Raipur, Reddy questioned whether Amaravati can realistically achieve large-scale urbanisation, noting that even well-developed regions such as Noida continue to face habitation challenges.

In contrast, he proposed the MAVIGUN model—linking Machilipatnam, Vijayawada, and Guntur—as a more viable alternative. By leveraging existing infrastructure, population base, and economic activity, he said, the model could enable faster and more cost-effective development.

Emphasising that Rayalaseema has already missed out on opportunities due to past capital decisions, Reddy urged the government to ensure balanced regional development with clearly defined timelines.

He concluded by warning that without financial prudence and practical planning, Amaravati risks becoming an unsustainable burden on the state’s economy.