2 Lakh Crore Amaravati Plan Unsustainable: Jagan

YSRCP president and former Andhra Pradesh Chief Minister YS Jagan Mohan Reddy on Wednesday asserted that his party was not opposed to Amaravati as the State capital, but stressed that its feasibility must be carefully evaluated in the larger interest of the State.

Addressing a media conference at Tadepalli, YS Jagan said the key question was whether the scale of expenditure proposed for Amaravati was practical and sustainable. “No one is against Amaravati, but everyone must ask whether it is achievable,” he said.

Positioning his earlier three-capital proposal as a pragmatic alternative, Jagan said the idea was aimed at balanced regional development without placing an excessive financial burden on the government or the public. He explained that Visakhapatnam was proposed as the executive capital to serve as a “growth engine” capable of competing with metropolitan cities such as Hyderabad, Chennai and Bengaluru.

“There was no self-interest in this approach. It was driven purely by practicality,” he said, adding that the plan also sought to ensure that welfare and development were not compromised by large-scale capital expenditure.

Jagan alleged that the Amaravati project, as envisioned by TDP president N Chandrababu Naidu, was financially unsustainable and primarily designed for “diversion and exploitation.” He questioned whether the State could realistically bear an estimated cost of ₹2 lakh crore for capital development, warning that such expenditure could strain public finances and delay the establishment of a functional capital.

Jagan further stated that the YSRCP’s model envisaged Kurnool as the judicial capital in line with the Sri Bagh pact, while retaining Amaravati as the legislative capital. “At no point did we neglect Amaravati,” he said, adding that measures such as enhanced annuities for farmers and increased pensions in the capital region were implemented during his tenure.

Highlighting Visakhapatnam’s potential, Jagan said that an investment of around ₹10,000 crore could significantly elevate the city’s infrastructure and economic capacity, generating employment and revenue within the State. “The objective was to create sustainable growth centres without pushing the State into a debt trap,” he said.

He also proposed an alternative “MAVIGUN” growth corridor linking Machilipatnam, Vijayawada and Guntur along an existing 110-km highway stretch. Declaring this belt as a capital region, he argued, could have created an integrated urban cluster at a fraction of the cost. “Even allocating 10% of the proposed Amaravati budget here could yield substantial results and save nearly ₹1.9 lakh crore,” he claimed.

According to Mr. Jagan, the corridor already has a combined population base of over 30 lakh across Vijayawada, Guntur and Machilipatnam, making it a viable candidate for rapid urban and economic expansion.

Criticising Mr. Naidu’s approach, he alleged that the push for a large-scale Amaravati capital was driven by vested interests, including land value appreciation. He warned that pursuing such a model could come at the cost of welfare and overall development, potentially pushing the State into deeper debt.

Reiterating his stance, Mr. Jagan said his proposals were guided by long-term public interest and equitable development, rather than political or personal considerations.