The Indian government has pledged ₹15,000 crore to Andhra Pradesh for the development of its capital city, Amaravati. This funding was announced in the Union Budget and fulfills a key request from the state government, which had sought financial assistance for the construction and development of Amaravati.
The allocation comes after Andhra Pradesh was separated from Telangana in 2014, leaving it without a permanent capital. Hyderabad served as the shared capital for ten years, but Andhra Pradesh has now chosen Amaravati as its sole capital.
This decision follows the previous government’s proposal to establish three separate capital cities: Visakhapatnam as the executive capital, Amaravati as the legislative capital, and Kurnool as the judicial capital. However, the current Chief Minister, Chandrababu Naidu, has opted for Amaravati as the single capital and plans to develop Visakhapatnam as the state’s financial center.
The Indian government’s financial support for Amaravati is seen as a strategic move to strengthen its alliance with the ruling Telugu Desam Party (TDP), led by Naidu, which is a key member of the National Democratic Alliance (NDA) coalition.
