maravati expansion on track as LPS 2.0 to kick off on Jan 7

Amaravati: In a decisive step towards expansion of Amaravati capital city, the Andhra Pradesh government will issue a land pooling notification on January 7 to aggregate 16,667 acres of land around the capital region, a move central to improving connectivity, attracting investment and completing city’s core urban framework.

The second phase of land pooling scheme (LPS 2.0), cleared by the Cabinet, will create space for key projects including inner ring roads, rail connectivity, airport and a proposed sports city. The notification is being timed for January 7, considered auspicious, after grama sabhas in seven core villages unanimously endorsed the proposal, signalling rare local consensus on a politically sensitive issue.

The LPS 2.0 comes as Amaravati begins to show signs of administrative consolidation. Several government institutions, including the Capital Region Development Authority (CRDA), Amaravati Development Corporation, Swachh Andhra Corporation, along with the Secretariat, Assembly and High Court, are now operational in the capital region, sharply increasing daily mobility and exposing the limits of existing road access.

Officials acknowledged that connectivity has emerged as the capital’s most pressing bottleneck. To address this, the government has instructed CRDA to fast-track road and rail linkages. The long-stalled Seed Access Road, which earlier halted near Venkatapalem and Manthena Ashram, has already been extended by 1.5 km and linked to the embankment road, easing movement into the core area.

However, land constraints remain. Of the required land for the access road, 4.5 acres are still pending, though owners of two acres have agreed to part with their land. Municipal administration minister Narayana said that if negotiations fail for the remaining parcels, the government will invoke the 2013 Central Land Acquisition Act and issue acquisition notifications on January 7 itself.

In parallel, the government plans phased acquisition of nearly 2,000 acres left out of the first phase of pooling, including 1,300 acres stalled due to family disputes and another 700 acres earmarked for structured acquisition. The objective is to remove all residual land hurdles and enable uninterrupted capital construction, officials said.

Rail connectivity is also back on the agenda. Around 1,400 acres across four districts, including Khammam, NTR, Palnadu and Guntur, will be acquired for a rail corridor linking Yerrupalem to Namburu, integrating Amaravati into regional freight and passenger networks.

The renewed push comes amid an unprecedented construction and financing pipeline. The state has invited Rs 56,000 crore worth of tenders for Amaravati projects, while multilateral lenders including the World Bank, ADB, HUDCO and Germany’s KfW have committed nearly Rs 45,000 crore, with initial disbursements already released.

With judicial complexes, judges’ quarters and institutional buildings now rising across the capital zone, the January 7 notifications mark a turning point, shifting Amaravati from policy intent to execution-driven urban development.