Amaravati declared as Andhra Pradesh Capital: Lok Sabha Passes Reorganisation Amendment Bill

Why in News?

• The Lok Sabha has passed the Andhra Pradesh Reorganisation (Amendment) Bill, 2026, granting statutory status to Amaravati as the sole capital of Andhra Pradesh.
• The move aims to end long-standing uncertainty over the state’s capital, which persisted since bifurcation in 2014.
• The Bill witnessed political opposition, with the YSR Congress Party staging a walkout during the debate.

Background and Context

• The issue of Andhra Pradesh’s capital dates back to the Andhra Pradesh Reorganisation Act (2014), which :
  • Bifurcated the state into Telangana and Andhra Pradesh
  • Designated Hyderabad as a temporary common capital for 10 years
• After bifurcation :
  • Andhra Pradesh required a new permanent capital
  • Amaravati was identified as the proposed capital
• However, the issue remained contentious due to :
  • The three-capital proposal (2020) : 
    • Executive: Visakhapatnam
    • Legislative: Amaravati
    • Judicial: Kurnool
  • Legal challenges and political disagreements
• The latest amendment seeks to provide clarity and finality to this prolonged debate.

Key Provisions of the Amendment Bill, 2026

• The Bill amends the 2014 Reorganisation Act to :
• Declare Amaravati as the Sole Capital : Provides legal and statutory recognition to Amaravati
• End Multi-Capital Ambiguity : Overrides earlier decentralisation proposals
• Ensure Administrative Stability : Establishes a single centre of governance
• Respond to State Resolution : Based on a resolution passed by the Andhra Pradesh Legislative Assembly requesting Centre’s approval

About Amaravati: The Proposed Capital

• Amaravati is a greenfield capital city project located on the banks of the Krishna River.
• Key features :
• Developed through an innovative land pooling scheme, with farmers contributing over 33,000 acres of land
• Planned as :
  • A sustainable, modern administrative hub
  • A city inspired by global capitals with advanced infrastructure
• Core institutions planned :
  • Legislative Assembly
  • Secretariat
  • High Court

Rationale Behind the Bill

1. Need for Administrative Certainty

• A state requires a fixed administrative centre for effective governance.
• Frequent policy shifts created : 
  • Confusion in administration
  • Delays in infrastructure development

2. Investor Confidence and Economic Growth

• The Bill is expected to :
  • Restore investor confidence
  • Unlock large-scale infrastructure investments (estimated ₹56,000 crore)
• A stable capital is essential for :
  • Attracting domestic and foreign investment
  • Urban and industrial development

3. Honouring Stakeholder Commitments

• Thousands of farmers contributed land under the land pooling model.
• The decision is seen as : 
  • Recognising their sacrifice
  • Ensuring continuity of the capital project

4. Political and Legal Clarity

• Resolves : 
  • Policy inconsistencies across successive governments
  • Legal disputes over the capital issue

Significance of the Decision

Governance and Administration

• Establishes a clear seat of power, improving : 
  • Coordination between institutions
  • Policy implementation

Federal Structure

• Highlights : 
  • Role of Parliament in matters linked to state reorganisation
  • Interaction between Centre and State in governance decisions

Economic Development

• Expected to : 
  • Boost infrastructure development
  • Generate employment opportunities
  • Strengthen regional growth

Urban Planning

• Promotes development of : 
  • A planned, modern capital city
  • Sustainable and smart infrastructure

Concerns and Criticism

1. Regional Imbalance

• Critics argue : 
  • Concentrating development in one region may neglect others

2. Political Opposition

• Some parties have opposed : 
  • Central intervention
  • Scrapping decentralisation approach

3. Financial Burden

• Development of a greenfield capital requires : 
  • Massive investment
  • Long gestation periods

Core Analysis: Stability vs Decentralisation Debate

Advantages of Single Capital Model

• Administrative efficiency
• Policy clarity
• Investor confidence

Arguments for Decentralisation

• Balanced regional development
• Reduced regional disparities
• Inclusive governance
• The debate reflects a broader question : 
  • Centralised efficiency vs decentralised equity

Way Forward

Short-Term Measures

• Ensure smooth implementation of the capital project
• Address concerns of different regions

Long-Term Strategy

• Promote balanced regional development alongside Amaravati
• Strengthen infrastructure across all regions

Policy Focus

• Combine: 
• Administrative efficiency
• Inclusive development

Practice Questions

Prelims :
Q. Which Act governs the bifurcation of Andhra Pradesh and creation of Telangana ?
(a) States Reorganisation Act, 1956
(b) Andhra Pradesh Reorganisation Act, 2014
(c) Government of India Act, 1935
(d) None of the above

Mains :
“Discuss the significance of declaring Amaravati as the sole capital of Andhra Pradesh in the context of governance and federalism.”