The Chandrababu Naidu-led government argues that Amaravati is developing naturally as a capital city. However, the undeniable truth is that Amaravati has effectively been turned into a real estate business.
Regardless of the government’s stance, public opinion is clear: Amaravati is being run like a real estate venture, and the plan seems to be to fund its development with the profits.
Initially, major investments are required for capital development. To facilitate this, the government has borrowed thousands of crores from various institutions. There’s a possibility of more loans being taken in the future.
CRDA has planned to sell 4,000 acres in the first phase. The government’s idea is to sell each acre at ₹20 crore, aiming to generate ₹80,000 crore to repay loans and fund development.
But is anyone really willing to pay ₹20 crore per acre? The general consensus says no.
Currently, the government has allotted land in Amaravati to private individuals and central institutions at drastically lower rates — around ₹50 lakh per acre to private entities and ₹4 crore per acre to central bodies.
For instance, 55 acres were given near Sakhamuru to a law university at ₹50 lakh per acre. Similarly, 6 acres were allotted near Thullur to Basavatarakam Cancer Institute, run by CM Naidu’s brother-in-law Nandamuri Balakrishna, also at ₹50 lakh per acre.
In such a scenario, the government must explain why anyone would spend ₹20 crore per acre.
Many say that selling 4,000 acres at ₹20 crore per acre is unrealistic. If this continues, the burden of the loans taken for Amaravati falls back on the government.
It might take 20–30 years for land in Amaravati to reach ₹20 crore per acre. Until then, the interest on the loans could end up doubling the principal.
Netizens are now questioning whether Amaravati’s development has turned into a riddle with no solution.
