Prime Minister Narendra Modi on Friday laid the foundation stone for projects worth Rs 58,000 crore aimed at reviving Amaravati as Andhra Pradesh’s capital, nearly 1,800 years after it served as the seat of the Satavahana dynasty.

Of the total, Rs 49,000 crore will fund 74 infrastructure projects, including a new Legislative Assembly, Secretariat, High Court and housing for judicial officers. State officials say work will begin immediately on roads, drainage systems and power supply.

The push to rebuild Amaravati dates to 2014, when then-Chief Minister N. Chandrababu Naidu proposed a greenfield city between Vijayawada and Guntur after Hyderabad became Telangana’s capital. His administration acquired more than 33,000 acres from about 30,000 farmers in 29 villages in exchange for plots and compensation once development was complete.

After the YSR Congress Party swept elections in 2019, the new government halted the scheme and proposed three separate capitals for legislative, executive and judicial functions in Amaravati, Visakhapatnam and Kurnool, respectively. Farmers and activists formed the Amaravati Parirakshana Samithi and filed court cases to block changes, leading to a five-year standstill.

A 2023 Comptroller and Auditor General report flagged cost overruns and irregularities in land allotment. By 2019, the state had spent over Rs 15,000 crore with little visible outcome. International partners from Singapore and Japan scaled back or withdrew due to the impasse.

Chandrababu Naidu returned as chief minister in 2024 with BJP alliance support and pledged to honour the original Amaravati plan. At a village meeting Thursday, Civil Supplies Minister Nadendla Manohar assured land contributors that the project would benefit all 29 villages that surrendered land.

State planners are now surveying up to 40,000 acres adjacent to the existing site to create a larger urban area, integrating Guntur, Vijayawada, Tadepalli and Mangalagiri. Proposals include an international airport, a dedicated rail link and inner and outer ring roads to connect the region.

Officials say the revised timetable aims for completion of key buildings by December 2027, with full infrastructure operational by 2030. They view Amaravati’s revival as critical to balancing growth across Andhra Pradesh and fulfilling promises made to farmers.