Naidu Govt Seeks Another 20,000 Acres After Taking 35,000 Earlier
No Returnable Plots, Rs. 40,000 Cr Debt, Costs Escalated to Rs. 77,000 Cr
Serious concerns are mounting that Chief Minister N. Chandrababu Naidu is pushing Amaravati deeper into financial and administrative chaos. Even after acquiring nearly 35,000 acres from farmers in the first phase, the government is now preparing to take another 16,666 acres, taking the total new acquisition close to 20,000 acres, including government land.Farmers who surrendered their lands a decade ago are still waiting for returnable plots, while 8,500 plot registrations remain pending. With no resolution to existing issues, fresh acquisition plans have triggered outrage across the capital region.
Farmers Left in the Lurch
For thousands of Amaravati farmers, the decade-long wait has yielded nothing but uncertainty.
- No clarity on returnable plots
- No mapping of allotted lands
- Registrations stuck for years
- CRDA officials allegedly turning away farmers
Residents say no minister or official addresses their concerns, and the administration is “adding new episodes to the Amaravati serial” instead of solving long-standing issues.
Experts question the rush for more Land
Urban experts note that the government has no clear utilization plan even for the first 50,000 acres. The push for another 20,000 acres is being described as “moving farmers from the frying pan into the fire.” They ask: Why new land when existing problems remain unresolved?
The Driving Force: Commissions, Not Construction?
Analysts argue that the rush for expansion is driven by contractor commissions rather than development, pointing to Naidu’s history of inflated estimates and hurried tenders.
During his earlier tenure:
- Only Rs. 5,587 crore was spent
- Bills cleared: Rs. 4,318 crore
- Rs. 3,000 crore advanced to select contractors
- Minimal real work executed
Reverse tendering and Judicial Preview, measures to ensure transparency—were scrapped soon after he took office again.
Amaravati: A Capital Built on Mounting Debt
Despite declaring Amaravati a “self-financing project,” the Naidu government has taken massive loans:
- World Bank & ADB: Rs. 15,000 crore
- HUDCO: Rs. 11,000 crore
- NABFID: Rs. 7,500 crore
- KfW (Germany): Rs. 5,000 crore
- AP PFCL: Rs. 1,500 crore
Total debt: Nearly Rs. 40,000 crore
Yet, experts note that only 40% of Phase-1 land has basic development.
Escalating Costs Raise Red Flags
Before 2019, Amaravati tenders were fixed at Rs. 41,170 crore, already considered inflated. Now, the same works are being shown at impossible cost escalations:
- New SoR estimate: Rs. 48,849 crore
- Latest government projection: Rs. 77,000 crore
- Secretariat building tender doubled from Rs. 2,271 crore to Rs. 4,689 crore
Observers warn that at this pace, Amaravati could become a multi-lakh-crore liability.
Lavish Spending, Minimal Progress
From temporary complexes in Velagapudi to new plans for permanent Assembly and High Court buildings, spending has surged despite limited progress on the ground.
Temporary structures alone cost:
- Rs. 11,000 per sq ft
- 6 lakh sq ft total area
- Additional Rs. 353 crore borrowed for temporary Assembly & High Court
Now, another Rs. 1,650 crore is planned for permanent structures.
Experts ask: “Do we need a High Court grander than the Supreme Court and an Assembly costlier than Parliament?”
The new Parliament cost Rs. 970 crore; the proposed AP Assembly is Rs. 724 crore.
A Capital Vision or a Capital Burden?
With unresolved farmer issues, soaring debts, escalating construction costs, and repeated allegations of insider trading and contract syndicates, many fear Amaravati is becoming an endless financial trap.
Farmers describe it as a decade of waiting, only to be pushed “from crisis to catastrophe.”
