After bifurcation of the erstwhile Indian state of Andhra Pradesh in June 2014, both the new states of Telangana and Andhra Pradesh are sharing the Hyderabad as capital for 10 years. Chief Minister of Andhra Pradesh Chandrababu Naidu announced in September 2014 that a single capital Amaravati would be built near Guntur and Vijayawada on the banks of River Krishna based on a master plan prepared by Singapore’s Surbana Jurong Pte Ltd. This region comprising of Vijayawada, Guntur, Tenali and Mangalagiri also called the ‘food bowl’ of the southern Krishna floodplains is one of the most fertile agrarian strips in the country.
Amaravati will be India’s first planned capital to build up from scratch in the recent decades. The core of Amaravati will be built on 33,000 acres of land owned by individual farmers between Vijayawada and Thullur along the banks of the Krishna River. When the project was announced, the proposed area in which the new mega-city would be constructed consisted of 25 villages and had a total population of 97,960.1 70% of the 217 square kilometres to be used for the city consisted of agricultural land and fruit and flower plantations.
The total cost of the project is US$715 million, out of which the Government of Andhra Pradesh is putting in US$215 million. Additionally, World Bank will put US$300 million and AIIB US$200 million in the project. The project is an environmental category A project for both the World Bank and AIIB since it has huge social and environmental implications.