Jagan Mohan Reddy Slams Amaravati Project, Warns Of Rs 2 Lakh Crore Debt

Former Andhra Pradesh chief minister YS Jagan Mohan Reddy accused sitting Chief Minister and Telugu Desam Party (TDP) chief N Chandrababu Naidu of making Amaravati a costly project that would put the state under huge debt.

Reddy said the Amaravati plan would cost nearly Rs 2 lakh crore and asked where the money would come from. He added that Naidu had once called Amaravati a self-financed capital, but is taking loans and using budget money for the project.

Reddy alleged that there was corruption at every stage, from land deals to giving contracts. He claimed some contractors were getting much higher prices than normal. 'The 'YSRCP was not against Amaravati. But it was against spending all the money in one place while other parts of the state were being ignored," he said. 

Reddy again supported the three-capital plan brought by his party when it was in power. Under that plan, Visakhapatnam would be the executive capital, Amaravati the legislative capital and Kurnool the judicial capital.

He said Visakhapatnam already has roads, offices and other basic facilities. So, it can work as the main capital with less spending.

Reddy also said his government had suggested the Machilipatnam-Vijayawada-Guntur corridor as another option for development, but that idea was not accepted.

The YSRCP chief said the state had already borrowed Rs 13,000 crore for Amaravati. He alleged that Rs 5,300 crore from that amount went back as commissions.

He also questioned the cost of buildings in Amaravati. Reddy said the government was paying more than Rs 14,000 per square foot for five towers, while similar buildings in other cities could be built for about Rs 4,000 per square foot.

He said the government was spending Rs 170 crore for every kilometre of flyover. During the YSRCP rule, the cost was only Rs 35 crore per kilometre, he claimed.

Reddy said too much focus on Amaravati was hurting welfare schemes in education, health and farming.

He said the original plan for a one lakh acre capital city had now come down to only 200 acres. He also said many promises like an international airport, nine new cities and an international stadium were missing from the latest plan.

Jagan also criticised the Assembly resolution on Amaravati and added that the Union government has no role in deciding a state capital. He pointed to states like Chhattisgarh, Jharkhand and Uttarakhand, where the capital was not decided by the Union government.