‘Amaravati will be a 3.5 Million People City with a $35 Billion GDP & 1.5 Million Job Opportunities by 2050’: S Suresh Kumar, IAS, Principal Secy, MA & UD, AP Govt

What does it take to build a city from scratch—one that’s not only future-ready but also rooted in sustainability, inclusivity, and innovation? In the heart of Andhra Pradesh, Amaravati city is being envisioned as a world-class capital designed to be a beacon of modern urban planning and environmental stewardship. 

In an exclusive conversation with APAC Media and CXO Media, S Suresh Kumar, IAS, Principal Secretary, Municipal Administration and Urban Development, Government of Andhra Pradesh,  shares Chief Minister N Chandrababu Naidu’s vision for the ambitious Amaravati project – making it into a green, resilient and inclusive capital city. 

Andhra Pradesh’s Amaravati is being developed as a world-class capital. What are the major sustainable infrastructure projects currently planned for the city, and how will they contribute to long-term environmental sustainability?

The city’s master plan includes several sustainable infrastructure projects focusing on green construction, efficient resource management, and disaster resilience. Amaravati will feature an extensive road network of around 1,600 kilometers, including 350 kilometers of trunk roads with footpaths and green cover to promote pedestrian-friendly and environmentally sustainable transport. Green building certification is a major priority—iconic buildings will meet green standards to ensure energy efficiency and reduced carbon footprint. We’re also ensuring compliance with all statutory regulations. Notably, about 30% of the city area will be dedicated to water bodies and green spaces, which far exceeds what most cities offer and aligns with international standards. Amaravati is also being designed as a zero-discharge city, with fully integrated sewage treatment, water supply, and drainage systems. 

How does the government envision integrating renewable energy sources into Amaravati’s infrastructure? Are there specific targets or plans for solar, wind, or other green energy solutions?

Amaravati is being built as a sustainable, future-ready capital city with a strong emphasis on renewable energy and energy-efficient infrastructure. By 2050, the city is projected to require about 2,700 MW of power, with a minimum of 30% sourced from renewable energy such as solar and wind. We’ve already installed 415 kW of rooftop solar panels across 16 Anganwadis, 14 e-health centers, 13 public schools, and a multi-faith funeral center. All government and commercial buildings will be mandated to install solar panels and adopt net metering. A district cooling system is being planned for government complexes to optimize energy use and reduce cooling demands. Additionally, public transport—including the Amaravati Metro and an electric bus fleet—will run on renewable energy. The city will also feature widespread EV charging infrastructure for public and government use. 

On the technology front, how are emerging technologies like AI and IoT being integrated into Amaravati’s development?

Amaravati is being developed as a deep tech-enabled city. Emerging technologies like AI, IoT, and blockchain will be deeply embedded in both the city’s construction and governance frameworks. Our Chief Minister Chandrababu Naidu has proposed establishing a ‘Quantum Valley’ in Amaravati, aiming to position the city as a global hub for quantum computing—similar to how Hyderabad’s Hi-Tech City transformed India’s IT landscape. We’re engaging with major stakeholders like IBM, L&T, and the Department of Science and Technology to make this happen. This project will go beyond current tech adoption and focus on the future. Meanwhile, blockchain and AI tools are already being used for land pooling, infrastructure planning, and smart governance. This not only ensures tech-enabled city operations but also significantly reduces cost inefficiencies. 

Which industries have been prioritized for the development of the city , under the Amaravati project, and what measures is the government taking to attract direct investments from these sectors?

Amaravati is not planned as an industrial city. We’re avoiding polluting or red-category industries to maintain livability, air quality, and water standards. Instead, we’re focusing on non-polluting service sectors. The master plan divides Amaravati into themed cities—each dedicated to a specific domain. For example,  Justice City with a high court, arbitration centers, and judicial academies; Finance City with various banking, fintech, and financial services; Knowledge City with higher education and research institutes; and Health City with hospitals and wellness centers. Similarly, Sports City, Electronic City, Media City, and Tourism City follow similar thematic models. In Media City, for instance, we’ll host the film and entertainment industry along with electronic and print media offices. Each city is purpose-built to support the ecosystem around that sector, enabling targeted investment and growth.

Given Amaravati’s rapid growth, what steps is the government taking to ensure the timely delivery of essential services such as housing, healthcare, education, sanitation, and transportation to its residents?

Over the next 3–5 years, we’ll see significant development of government institutions and residential infrastructure. The government is building around 3,500 apartments and 200 individual houses for ministers, high court judges, and senior officials. In addition, the ‘Happy Nest’ project will offer 1,200 integrated residential units, which are already sold out. Under the Pradhan Mantri Aawas Yojana, citizens who gave land for the capital are being compensated with developed plots and housing. Overall, more than 10,000 housing units—government, private, and individual—are being constructed. Alongside housing, we’re ensuring the parallel development of healthcare, education, and entertainment facilities to support a vibrant, livable city.

What is the expected economic impact of Amaravati’s development on the surrounding regions? 

Amaravati is envisioned as a city of the future. Based on the planning and the vision of our Honorable Chief Minister and all those involved, I can confidently say that Amaravati is expected to have a transformative economic impact not just on the state but the entire southern region of India. The city is being positioned as a major economic center, focusing on sectors such as engineering, electronics, health, education, entertainment, and other service industries. We’re talking about developing around 8,000 square kilometers into a dynamic economic hub. It will become one of the most prominent centers of economic activity in the country.

What role do national and international partnerships play in the development of the city under the Amaravati project? Could you share any key collaborations the Andhra Pradesh government has entered into for the city’s development?

Partnerships are a crucial part of this initiative. The Honorable Chief Minister has emphasized that Amaravati is a people’s capital. We have already forged international partnerships with institutions like the World Bank, Asian Development Bank (ADB), and KfW (a German development bank) for funding. HUDCO has also extended loans to support our infrastructure. We estimate that around Rs. 70,000 crore will be required for developing core infrastructure in the next 3 to 5 years. Out of this, Rs. 31,000 crore has already been mobilized through these partnerships. This seed capital will trigger further growth. What’s important is that we’re not taking funding from the state budget. Once the city begins to grow, the Capital Region Development Authority (CRDA) will monetize land to generate revenue, creating a self-sustaining financial model. Additionally, we’re engaging in Public-Private Partnerships (PPP) and Build and Operate model in several sectors — education, healthcare, entertainment, convention centers, and more. Several top private and deemed universities have already initiated activity here. We’re also working with stakeholders from the sports sector to develop India’s biggest Sports City — spread across 500 acres — with partnerships from bodies like BCCI and the Golf Federation of India. All this reflects the inclusive, participatory planning we’re doing with both public and private entities.

Urban poverty and inequality remain significant challenges for rapidly developing cities. What specific strategies is the government employing to tackle poverty, ensure affordable housing, and create economic opportunities for marginalized communities in Amaravati?

Inclusion is central to Amaravati’s development. We’re following a multi-pronged approach to tackle urban poverty and inequality. This includes developing 5,024 affordable housing units for economically weaker sections (EWS), establishing skill development centers to help integrate marginalized communities into the city’s fabric, and ensuring access to basic infrastructure and services like education and healthcare. We anticipate a massive demand for both skilled and unskilled labor. As workers migrate here, transit accommodations will be provided initially. Those looking to settle will be offered affordable housing options. We’ve also tied up with the National Skill Development Council and private partners to offer large-scale training programs — both during the construction phase and beyond. We want to ensure everyone contributing to this city is well taken care of and gets access to growth opportunities.

Developing a city like Amaravati involves several challenges. What are some of the biggest obstacles you foresee in achieving the vision for the city, and how does the government plan to overcome them?

One of the biggest challenges in the early stage was acquiring sufficient land. From 2014 to 2019, the government appealed to the people to become part of this journey. Through a land pooling scheme, we mobilized around 55,000+ acres, entirely on a voluntary basis — an unprecedented initiative in India and perhaps globally. Secondly, we needed substantial funding. We’ve already secured 30-40% of what’s needed through multilateral agencies and institutions like HUDCO. The rest will come through market borrowings, municipal bonds, and land monetization. Land values in the region are rising rapidly, giving us the confidence to raise further funds. Ensuring equitable distribution of the city’s benefits is another challenge we are tackling head-on. This includes access to housing, education, healthcare, and economic opportunities for all, especially the underprivileged. Lastly, we’re very mindful of climate change, flood risks, and natural disasters. Cities across the world are struggling with unplanned growth and lack of preparedness. Amaravati is being planned for the next 200 years, taking into account historical data on rainfall, river flow, and environmental risks. Our goal is to build a disaster-resilient city from the ground up.

What is the expected timeline for the completion of key milestones in the city’s development? Can you highlight some of the most important upcoming stages of the project?

We’ve set both short-term (2-3 years) and long-term goals. The government housing and trunk infrastructure will be ready in 18 to 24 months. Iconic buildings like the High Court, Secretariat, and Legislative Assembly will be completed in around 3 years. Additionally, infrastructure for education, healthcare, hospitality, and sports sectors will also come up in the 3 to 5-year window. Ultimately, by 2050, we envision Amaravati as a thriving economic hub with a population of 3.5 million, a GDP of $35 billion, with 1.5 million job opportunities. All of this will make Amaravati one of the most significant city-building exercises in Indian history. The collaboration between government, the private sector, and citizens will be key to turning this vision into reality.

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