Chandrababu Unveils Rs 338 Crore CRDA Building: Architectural Marvel or Misuse of Public Funds?

Chief Minister N Chandrababu Naidu inaugurated the new office of the Andhra Pradesh Capital Region Development Authority (CRDA) in Amaravati on Monday (October 13).

In a post on X (formerly Twitter), the official handle of the Telugu Desam Party (TDP) shared a video of the newly completed building. According to the post, the structure stands on 4.23 acres, with a built-up area of 2.42 lakh sq ft spread across seven floors, each measuring around 33,000 sq ft.

While the government has not disclosed the official cost, reports indicate that a staggering ₹338.14 crore has been spent on the project.

Originally, the CRDA office on Seed Axis Road in Rayapudi was designed as a two-storey (G+1) building, with tenders finalized at ₹39.69 crore. However, the plan was later expanded to seven floors, raising the estimated cost to ₹84.74 crore for a total built-up area of 3.07 lakh sq ft. By May 2019, work worth ₹43.7 crore had been completed.

In 2024, the government awarded additional contracts worth ₹160 crore for internal finishing—covering mechanical, electrical, plumbing, fire safety, and external development works, including GST and cess. Another ₹93.4 crore was sanctioned for furniture, interiors, and other fittings.

Altogether, the cost ballooned from ₹84.74 crore to ₹338.14 crore, pushing the construction cost per sq ft to ₹11,002.64.

For context, experts note that the cost of building five-star hotels in cities such as Hyderabad, Bengaluru, and Chennai typically ranges between ₹4,000–₹4,500 per sq ft.

Three floors of the CRDA complex have been allocated for various departments, including CRDA offices, the Command Control Centre, CDMA, RERA, DTCP, Public Health ENC, and HoDs of the Municipal Administration and Urban Development Department. The building also houses five large meeting halls.

The inauguration, however, has sparked comparisons and criticism. The TDP government has often targeted YSRCP chief and former Chief Minister YS Jagan Mohan Reddy for constructing the Rushikonda complex in Visakhapatnam at a cost of over ₹500 crore across 9.88 acres.

Adding to the controversy, the ceremony comes just as the TDP government has decided to privatize 10 medical colleges, raising concerns about affordable healthcare and access to medical education for underprivileged students.

During his recent visit to Narsipatnam Medical College, which is slated for privatization under the PPP model, Jagan accused Chandrababu Naidu of diverting attention from public welfare to fund Amaravati’s development. He questioned why the government couldn’t allocate even ₹1,000 crore a year for strengthening medical institutions.

The inauguration of what’s being hailed as an “architectural marvel” has once again brought the TDP government’s priorities into focus.

On one hand, Naidu has cited the state’s fragile financial position to justify delays in welfare schemes under the Super 6 promises. On the other, his vision for Amaravati continues to expand.

During his previous tenure (2014–2019), about 50,000 acres were acquired to build the capital city at an estimated cost of ₹1 lakh crore. Now, after returning to power in 2024, the government has initiated plans to acquire another 50,000 acres, doubling the projected expenditure to ₹2 lakh crore.

Chandrababu Naidu has often been hailed as the “CEO Chief Minister”, credited for transforming Hyderabad into an IT hub and celebrated for his visionary leadership. However, it may be time for the Chief Minister to focus more on function over façade—to prioritize substance rather than spectacle. As the state grapples with economic strain, spending taxpayers’ money on grand dreams of luxury may seem misplaced when what people truly need is affordable education, accessible healthcare, and decent housing.