Challenges in building new capital and it’s financial implications.

India’s Happiest and Healthiest city

  • Amaravati is envisioned as a unique, vibrant and beautiful city with no crowding, crime, pollution or homelessness, a hometown where young people, families and elders can thrive, a local economy that attracts talented people and global businesses, and a community where everyone contributes and shares in natural beauty and educational and economic opportunities.
  • Around the world, the most forward-looking leaders are recognizing that economic growth, by itself, is a poor measure of a society’s success. Employment figures tell an incomplete story,because simply finding a job does not guarantee that a citizen has a wholesome lifestyle and can afford necessities such as adequate food and shelter, healthcare or education. Nations around the world, from Bhutan to France to the United Nations, are increasingly including happiness and wellbeing amongst their national goals. These more holistic measures ofsuccess include not just jobs and incomes but every element of what makes a life worth living and a job worth doing; health and safety a sense of community, history and heritage free time to spend with family and friends good schools and green spaces for children a range of affordable entertainment options; opportunities for skill-building and career advancement; an engaged and responsive government; and public spaces where people can gather to share ideas and celebrate.
  • In pursuing this goal, the importance of economic growth is not ignored; indeed, happiness and health are cornerstones of every economy. Happier and healthier people are more productive and imaginative, more eager to contribute to their communities and their professions, and more appealing to employers considering where to expand or launch new operations. More livable cities attract more talent, which in turn attracts investment and entrepreneurs in a virtuous cycle. A steady focus on environmentally friendly growth ensures that livability is sustainable and that the natural blessings that make Amaravati uniquely beautiful are preserved for future generations





  • The responsibilities of planning, coordinating, executing, supervising, financing, funding, promoting and securing the planned development of the capital region development area, have been vested in APCRDA by the virtue of the APCRDA Act, 2014. The requirements of promoting and securing planned development of the Capital Region Development Area needs a dedicated arm of the organization to function systematically for ensuring that the objective goals are realized.
  • The Economic Development division of APCRDA has been formed with the functional responsibilities of Planning, Promoting and Partnering for sustained economic development of the Capital City as well as Capital Region area.



  • Create a Global City of opportunities and sustain economic development in the Andhra Pradesh Capital Region



  • Develop and implement economic development policies for Amaravati & Capital Region.
  • Connect agencies, organizations, leaders to facilitate development, create sustainable jobs & opportunities in Amaravati & Capital Region.
  • Undertake Strategic bi-lateral & multi-lateral co-operation arrangements.
  • Promote Amaravati & Capital Region for investments from across the globe.
  • Facilitate investments in Amaravati & Capital Region.
  • Motto: Plan – Promote – Partner




  • Economic Planning & Policy formulation:The broad functions under this wing of the division are to prepare various economic plans and policies such as Socio-Economic Masterplans, Land Pricing Strategy, Investment plans, Development models, Land Allotment Policy & procedures, International co-operation plans, Competitive strategies for both Amaravati city and Capital Region. This wing will also be responsible for monitoring the economic performance of developments undertaken by the Authority.
  • Investment Promotion:The broad functions under this wing of the division are to plan and execute various promotional activities such as sector specific, region/country specific investment promotion events/roadshows, conduct and participate in investment promotion exhibitions/summits, organize and participate in various investment related workshops, industry-academia conferences etc., This wing will also be responsible for arranging G2G, Sister City, Sector specific MoUs/MoAs for Amaravati and Capital Region. It will also co-ordinate with State as well as National marketing agencies.
  • Investment Facilitation:The broad functions under this wing of the division are to facilitate various investment facilitation activities such as operating sector/region/country specific communication channel, operating Entrepreneurs and NRI guidance cells, evaluate investment proposals and facilitate land allotment, facilitate logistics and hospitality for potential investors for Amaravati and Capital Region, facilitate single window clearance program, facilitate APCRDA/GoAP/GoI incentive applications, facilitate grievance redressal, facilitate industrial infrastructure and utilities support. This wing will also be responsible for collecting and feeding back economic performance information of the developments undertaken by the Authority, to the Economic Planning wing.




  • A group of young, qualified and experienced professionals from planning, engineering and management backgrounds are working to ensure that the planned investments and developments are secured in Amaravati and the Capital Region. The division is led by Sri Nagi Reddy Y, a seasoned professional with experience of over 25 years working in the Industries department of Government of Andhra Pradesh.





Higher Education

  • Andhra Pradesh is a forerunner in higher education with a legacy of top universities. It is amongst the top six states for engineering, for example, accounting for about 65% of all intake. The state passed the AP Private Universities Act in 2015 – path-breaking legislation which eases the process of setting up credible private higher education establishments. One of the most forward-looking higher-education laws in the country, the Act permits universities to receive approval in about 140 days based on recommendations from an appointed panel of experts.
  • Amaravati is envisioned as a hub for top-tier universities with a focus on providers which are multi-disciplinary or renowned in an anchor sector. The city plans to explore collaboration with leading international education providers as well. A model for new-age education, the city aims to promote innovative delivery models such as online, hybrid and field-and-forum courses, to bring world’s best professors to Amaravati through virtual classrooms. To attract faculty and students, the city will need to be highly livable and offer a strong social infrastructure, dining, entertainment, etc.



The Amaravati Advantage:


Ease of business:

  • The AP Private Universities Act, the most forward-looking bill in India, allows universities to receive approval in about 140 days based on recommendations from an appointed panel of experts.


Economic activity in vicinity:

  • Co-location with growing economic hubs which provide internship and career opportunities to students. Amaravati is envisioned as one of the fastest-growing economic hubs which could generate nearly 4–6 lakh jobs over the next 10 years.


Social infrastructure:

  • Designed as per smart-city benchmarks, Amaravati will be able to offer world-class social infrastructure amenities.



  • Amaravati is well-connected to all major modes of transport and nearby Tier 1 cities – it has two highways and is about 50 km. from the airport, about 20 km from the Vijayawada railway junction, and 300–600 km from Hyderabad, Chennai and Bangalore.
  • Availability of encumbrance free land



9 Theme Cities


  • A city of 9 cities
  • Government City
  • Knowledge City
  • Tourism City
  • Health City
  • Electronic City
  • Finance City
  • Media City
  • Sports City
  • Justice City




Following methods of land allocation are under implementation in Amaravati region:

On Application and/or by Nomination

  • Where the Applicant is a department of the Central Government/State Government/Local Self Government or Government Autonomous Body constituted under any Act provided the land is used for public purpose or Undertakings of the Central/State Government either for the purpose of office/residential use owned by such undertaking.
  • Where the Applicant is a reputed National/International Institution in the fields of education, health, arts and culture, or is a large and unique National/Multinational Corporation, or is an established R&D Institution.
  • Where the Applicant is a Foreign Government Consulate or any other office of the Foreign Government provided, that necessary permission from the Government of India in this regard shall be obtained.
  • Allotment under this Method shall be made with the prior approval of the Government or on a specific direction of the Government.
  • The Authority may determine the location, size, and price of the land to be allotted under this method with due regard to the provisions of the Master Plan and/or the Development Plan.

Quality based Selection

  • Where Authority intends to allot land/plots for Economic, Social and Infrastructure Development objectives or any combination thereof.
  • Where the applicant/bidder is large but not unique.
  • Where quality of the Applicant is paramount and there are multiple potential applicants.
  • Where the market price vis-à-vis the merits of the Applicants is not determinable.
  • All the applicants shall be listed in the order of merit determined by the score in the valuation.
  • The Financial Bid of the top scoring Applicant shall be opened and processed for approval.
  • The Authority may negotiate with the top scoring Applicant to improve the financial bid failing which it may negotiate with the second top scoring Applicant and so on


Quality Cum Price based Selection

  • Where Authority intends to allot plots for some specific use for Economic and/or Social Development Objectives.
  • Where Quality of the successful bidder is important but not Paramount though not important in the event of the participation of many potential bidders of good quality.
  • Where the market price vis-à-vis the merits of the Bidder cannot be determined.Where the applicant/bidder is a medium-to-large entity as per the classification notified by the Government of Andhra Pradesh/Government of India.
  • Financial bid of all Applicants complying with all such requirements as prescribed by the Relevant Authority is opened and the highest Financial Bid shall be selected for approval by the Authorized Person.

Public Auction including e-Auction and Public Tender including e- Tendering

Randomized Selection

  • This method is typically used for Affordable housing, EWS housing or housing for any specified category, Allotment of Plot/s for social amenities such as schools and community plots such as MahilaMandals, educational, health, spiritual & religious institutions, etc. and Other cases of social development where the price is fixed.
  • The selection shall be by draw of lots.



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