The Government of India has sought assistance from the World Bank to develop Amaravati as a new economic hub and state capital for Andhra Pradesh. The project aims to model the planning of an inclusive, climate-resilient city in fast-urbanizing India.
Amaravati is located along India's East Coast Economic Corridor and will be part of a larger metropolitan area that includes Vijayawada and Guntur. The government has prepared a master plan for a 217 sq km city designed to accommodate 3.5 million people by 2050, where currently about 100,000 residents live.
Under the Amaravati Integrated Urban Development Program, the World Bank will support the initial phase of the city's development. "The Program will help strengthen the institutions and build the capacity needed for an inclusive city that can serve as a growth hub for the state and create opportunities for its residents," according to a statement from involved parties.
This program was developed through consultations with various stakeholders, including local communities, drawing on lessons from global urban sector engagements by the World Bank. Insights gained from Amaravati's development are expected to influence other city projects across India.
The World Bank aims to establish accountable governance structures integrating citizen engagement in planning and development. This includes setting up a Unified Metropolitan Transportation Authority and customer-focused utilities for essential services like water supply and sewerage.
World Bank financing is expected to catalyze over $600 million in private sector investment, potentially creating 50,000 jobs over five years in sectors such as construction, agro-processing, clean manufacturing, and services.
The program emphasizes inclusion and gender-sensitive urban development by providing skill creation opportunities primarily targeting women. Of approximately 17,000 participants receiving training under this initiative, 10,000 are women.
Landless laborers previously working in the area will receive skills training alongside ongoing government support like pensions and interest-free loans for self-employment. The master plan reserves 22 percent of residential areas for affordable housing schemes supported by green initiatives through private sector mobilization.
Infrastructure plans include developing climate-resilient systems such as a comprehensive road grid served by low-carbon transport options. A flood management system incorporating nature-based solutions is also planned to mitigate future flooding risks.
The innovative land pooling scheme used by the government has seen around 29,000 farmers voluntarily contribute agricultural land in exchange for plots serviced with core infrastructure like roads and electricity while receiving additional benefits.
Citizen participation is integral to this initiative with mechanisms like a Citizens’ Committee advising on planning matters alongside village-level offices engaging communities continuously. Grievance redress mechanisms have been established offering multiple channels for citizens to voice concerns or issues during implementation phases.
Financing details reveal that out of $1.78 billion allocated for Amaravati's first-phase development; $800 million comes from World Bank contributions while $788.8 million is provided by Asian Development Bank support.