A Tale of Two Governments and One Capital City
Amaravati, the ambitious capital city of Andhra Pradesh, has been a subject of intense political and economic debate since its inception in 2014. The city, situated strategically between the major cities of Vijayawada and Guntur, was chosen by the then-Chief Minister Chandrababu Naidu as the state's new capital after the bifurcation of Andhra Pradesh and the formation of Telangana.
The Initial Vision and Challenges
Naidu's government envisioned Amaravati as a greenfield capital city, investing over Rs 50,000 crore to bring this vision to life. However, the state's poor finances and the need for Hyderabad to serve as a temporary capital for both states until 2024 hindered the project's progress. Despite an investment of approximately Rs 10,000 crore, the necessary infrastructure, including roads, drains, and utilities, remained incomplete by the time Naidu's government lost power in 2019.
The Three-Capital Proposal and Legal Battles
The newly elected YSRCP government, led by Chief Minister Jagan Mohan Reddy, halted the development of Amaravati and introduced a proposal for three capitals: Visakhapatnam as the executive capital, Amaravati as the legislative capital, and Kurnool as the judicial capital. This decision was met with opposition from the TDP and legal challenges from farmers who had donated their land for the Amaravati project.
Why did the initial stage of development fail?
In 2019, Jagan Mohan Reddy’s YSRCP came into power and they halted the development of Amaravati and introduced a proposal for three capitals, designating Visakhapatnam as the executive capital, Amaravati as the legislative capital, and Kurnool as the judicial capital. In March 2022, the Andhra Pradesh high court directed the YSRCP government to develop Amaravati as the sole capital, a decision the YSRCP government challenged in the Supreme Court, where it remains pending.
There are 3 main reasons why Jagan Mohan did not want Amaravathi to be the sole capital:
1) In 2014 before Amaravati was chosen as the location of the next capital, there were a large number of land deals. YSRCP repeatedly claimed that TDP leaders and the rich Kamma community from which Naidu hails took advantage and bought large parcels of land at throwaway prices. YSRCP ensured that the capital project in which Naidu invested thousands of crores does not benefit the opposition party’s supporters.
2) The YSRCP government claimed that if Amaravati, Visakhapatnam, and Kurnool was the legislative, executive, and judiciary capital, this way, coastal Andhra, Rayalaseema and central Andhra would get equal attention in developmental aspects.
3) Jagan Mohan’s personal grouse with Naidu. If Amaravathi had succeeded as the sole capital, the credit would have gone to Naidu and TDP. As Mr. Naidu always takes credit that he was the one who made Hyderabad what it is today when he was the CM of united Andhra. Jagan didn’t want that to happen.
The High Court Verdict and Supreme Court Appeal
In March 2022, the Andhra Pradesh High Court directed the YSRCP government to develop Amaravati as the sole capital of the state. The government, however, challenged this decision in the Supreme Court, where the case remains pending.
Naidu's Return and the Amaravati Comeback
The recent victory of the TDP in the Andhra Pradesh state elections has paved the way for Amaravati's revival. Chief Minister Chandrababu Naidu has announced that Amaravati will be the sole capital of the state, and development work has already resumed. Land prices in Amaravati have already surged by 50% to 100%, reflecting renewed interest and confidence in the capital's future.
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