The Management behind Amaravati’s Development: Turning Vision into Reality
By- Rama Krishna Reddy, MBA Student, Paari School of Business, SRM University-AP
Introduction
In 2014, Andhra Pradesh state got bifurcated, and the existing capital city Hyderabad went to the newly formed state Telangana now. Now Andhra Pradesh left without capital. Government of Andhra Pradesh declared Amaravati (29 villages between Vijayawada and Guntur) as the new capital of Andhra Pradesh. Amaravati was selected due to central location, easy accessibility, and the potential of development.
The governing body
The area declared as capital was an undeveloped region. To develop the entire region, a governing body is required, so the government of Andhra Pradesh established a capital governing body APCRDA (Andhra Pradesh Capital Region Development Authority) in 2014.
APCRDA takes care of the entire part from planning to executing the construction and the other developmental activities in Amaravati. APCRDA has pooled approximately 33,000 acres of land from farmers and added government land of about 16,000 acres for capital construction.
The vision of Amaravati
Amaravati is planned as a Greenfield capital and designed as a people’s capital. The core vision of Amaravati is smart infrastructure, sustainable operations, demand-driven development, and focus on future needs rather than short-term solutions. Amaravati blueprint is designed with nine themed cities. They are finance, knowledge, health, electronics, justice, sports, media, and tourism cities. Estimated population in Amaravati by 2050 is 3.55 million and 1.17 million of workforce. Total major road length planned is 593 km, with hierarchy roads, where the total road network is 1500 km. Water supply, wastewater management, and stormwater management are designed as per WHO standards. Additionally, a smart government framework has been incorporated in Amaravati. The city is planned as a sustainable and green model, where more than 45% of the space is dedicated to parks, water bodies, ecosystems, and open spaces, to make one of India’s sustainable capital cities. The vision also includes smart governance, economic growth, and global city ambitions.
Reality
The actual development in Amaravati started with land pooling from farmers. After acquiring the land, APCRDA has started its constructional operations. The estimated cost for Amaravati development is 91,270 crores. To manage this, a multiple funding strategy has been adopted. Major financial support of 15,000 crore comes from World Bank, 11,000 crore from Housing and Urban Development Corporation, 7,387 crores from National Bank for Agriculture and Rural Development, and 7,500 from National Bank for Financial Infrastructure and Development. Amaravati is designed as a self-financing capital, where revenue is generated through the land development. APCRDA does not work alone; due to the scale of the project, it has partnered with various organizations for specialized activities. Companies like KMC Construction, MEIL, and L and T are involved in infrastructure construction. Bureau Veritas plays an important role in quality certification, safety audits, and compliance checks, ensuring that all the activities meet global standards. Another important organization is Amaravati Growth and Infrastructure
Corporation Limited (AGICL), which was created by the government of Andhra Pradesh to focus mainly on financing and execution of infrastructure projects and works closely with APCRDA. In 2019, the government changed; due to this major political change in Andhra Pradesh, the construction activities between 2019 to 2024 were halted. Again, in 2024, the government has changed, and the work was resumed, but many structures were damaged, materials were lost, and rework was required. This increased cost and delays. With this, every operation in Amaravati got delayed.
Current operations
A large workforce is required to execute such a massive project. Currently, 20,740 workers are involved in the construction activities of Amaravati. Most workers are from states like Bihar and Uttar Pradesh. Contractors are responsible for hiring workers, providing them accommodation and transportation facilities. APCRDA also ensures worker safety, security, and welfare measures. To support day-to-day developmental operations in Amaravati, currently 3,952 machines (some of them are vehicles) are used, along with the establishment of 16 hot mix units, 36 wet mix units, and 34 ready mix concrete units. To track and monitor the projects, advanced technologies are adopted. For project scheduling, tools like Primavera P6 are used. For approval and workflow management, platforms like Inncircles and Arena are used. 7D Building Information Modeling (BIM), GIS mapping, and satellite imaging are used to track progress and check accuracy. E-Measurement Book system is being used through Softech platform. All these systems are interconnected, which means once a task is approved, it automatically reflects in all other digital platforms. Currently, APCRDA is handling 90 projects, out of which 76 projects are delayed, 10 projects are on track, and 4 projects are completed. One of the interesting operational strategies observed is off-site manufacturing and on-site assembly. To maintain quality in operations, APCRDA follows strict quality management practices. They test the construction samples at SRM University AP.
Conclusion
Amaravati stands as a strong example of how effective management practices can drive large- scale development operations and shape the future of the entire region. It is also important to understand that big cities are never built in a day. They evolve step by step, project by project, through continuous effort and long-term vision. In the case of Amaravati, the approach is proactive, with a focus on smart and sustainable operations in the future. This forward-thinking strategy ensures that in the upcoming years, day-to-day operations within the city will become smoother, more efficient, and more comfortable for its people.
