Tirupati, May 3, 2026: Rayalaseema Intellectuals Forum Convenor M. Purushottam Reddy stated that the recent decisions of the Chandrababu Naidu-led government are not benefiting Amaravati in any meaningful way and instead raise serious concerns about financial priorities, transparency, and planning. Speaking at the Tirupati Press Club, he pointed out that the government itself appears confused on Amaravati’s execution, as reflected in multiple and inconsistent cabinet decisions and GOs, particularly regarding Secretariat construction, cost structuring, and policy direction. He questioned why different GOs are being issued for the same Secretariat project and criticised the decision to cancel 50,000 house site pattas earlier allotted to the poor, calling it unjust and counterproductive to urban growth.
He highlighted glaring discrepancies in construction cost estimates, noting that while the government claims a cost of Rs 6,982 per square foot, YSRCP leaders have stated it is around Rs 18,000, and a closer examination of GOs and contractor agreements indicates the actual cost is around Rs 19,660 per square foot. He asserted that splitting expenditures through multiple GOs is a deliberate attempt to understate the real cost and mislead the public. At a time when the government claims it lacks funds to clear dues to mango farmers in Chittoor district, allocating massive funds and taking loans for Amaravati raises serious questions about priorities and fiscal responsibility.
Purushottam Reddy further questioned the logic of allocating Rs 57,000 crore to other works without first investing in core infrastructure and fulfilling commitments to farmers. He explained that for Amaravati to generate revenue, the government must first develop infrastructure and distribute returnable plots to farmers, after which 5,000–6,000 acres can be monetised. Without this foundational investment—estimated at around Rs 1 lakh crore—wealth creation is not feasible. He questioned how the government plans to generate revenue while neglecting these essential steps, and warned that interest payments on loans, including those linked to World Bank funding, will soon add further pressure on the state’s finances.
He also pointed out that under agreements with farmers, the government must provide developed residential and commercial plots and continue paying annuities, which have already cost around Rs 2,500 crore over the past decade, with an additional annual burden of about Rs 300 crore continuing due to delays. Despite this, the government has not prioritised plot development or infrastructure, instead diverting large funds elsewhere, which he said would only increase the financial burden on the state.
Drawing a broader comparison, he cautioned against building an excessively expensive capital city without addressing the socio-economic realities of the state, likening it to historical examples where grand infrastructure coexisted with widespread poverty. He stressed that a capital city must be inclusive, accommodating all sections of society, including the poor and middle class, rather than becoming an exclusive urban enclave. Cancelling housing allocations for 50,000 poor beneficiaries, he said, has deprived Amaravati of organic population growth that could have helped build a functional urban ecosystem.
Concluding, Purushottam Reddy urged the government to reassess its Amaravati strategy, adopt a balanced and financially prudent approach, and align capital development with the broader needs of the people. He warned that continuing on the current path without course correction could impose a severe and lasting economic burden on the state.
*YS Jagan pays tributes to Kasu Brahmananda Reddy*
