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Amaravati Capital City 2.0 expansion hits a roadblock

The expansion of Amaravati Capital City 2.0 has hit a major roadblock due to funding disputes and bureaucratic delays, stalling development momentum and raising concerns among stakeholders.

Amaravati Capital City 2.0 expansion hits a roadblock

Amaravati Capital City 2.0 expansion hits a roadblock
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15 July 2025 3:59 PM IST

The ambitious plan of TDP-led coalition to expand the jurisdiction of Amaravati Capital City appears to have received a jolt, albeit for the time being, with the decision at the highest level to go ahead with land acquisition only after allaying fears expressed in certain quarters about its possible ramifications.

Though the Amaravati 2.0 project by acquiring 42,226 acres under Land Pooling Scheme from the farmers was considered as the dream project of Chief Minister N. Chandrababu Naidu, a decision has reportedly been taken to keep land acquisition at the recent Cabinet meeting under abeyance following apprehensions expressed by the Jana Sena Party, a key ally of the coalition. Interestingly, IT, Electronics and Education Nara Lokesh, who was present also appeared to have agreed with the apprehensions saying there was no need to go ahead with land acquisition from the farmers as there is a need to complete the first phase of work in 2028, sources in Capital Region Development Authority (CRDA) told Bizz Buzz.

Jana Sena leader and Civil Supplies Minister N. Manohar is understood to have strongly raised his voice against the manner in which the decision was taken to complete the land acquisition under LPS despite inordinate delay in passing on the benefits to the farmers, who had surrendered over 30,000 acres in 2015 from 29 villages. Amaravati development was almost stopped during the five-year regime of YSRCP during 2019-24. Prime Minister Narendra Modi kicked off Amaravati Restart on May 2 by launching works worth crores of rupees including construction of several towers.

A section of farmers as well as the Opposition parties had raised strong protests over the proposed land acquisition for Amaravati 2.0 which included 5,000 acres for an international airport, 2500 acres each for a sports city and for allotment of plots to green industries.Meanwhile, sources said a sub-committee of Ministers led by P. Narayana will be constituted to study the pros and cons of land acquisition for Amaravati 2.0 and till its recommendation, Amaravati 2.0 project will be put on hold. At the same time, sources said the government has decided as part of a revised strategy not to allow a negative narrative with the spread of word that under pressure, a decision has been taken not to acquire lands. "Such propaganda may dent the image of the State Government," a TDP MLA and former Minister said.

Amaravati Capital City 2.0 Amaravati expansion Andhra Pradesh capital project delay funding disputes bureaucratic hurdles urban development capital city planning Amaravati controversy infrastructure roadblock 
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