Amaravati set to become India’s second greenfield city with fully privatised power distribution

Amaravati, Andhra Pradesh's under construction capital, is poised to become the second greenfield city in India, after Greater Noida, to completely privatize power distribution.

Andhra Pradesh government has called for expression of interest (EOI) from private power companies for “establishment and operation of electrical distribution network with distribution and retail supply of electricity in Amaravati Capital City”. According to sources, a team of Calcutta Electric Supply Corporation (CESC) has already conducted a field visit and shown interest in establishing and distributing power in the new capital city of Andhra Pradesh. Incidentally, CESC powers Greater Noida through its subsidiary company Noida Power Company Limited (NPCL). In 1993, Uttar Pradesh government privatised power distribution in Greater Noida, which became the first greenfield city in the true sense where power was privatised. Power privatisation of state-owned entities was initiated much later in 1999. Delhi, for instance, privatised power in 2002 and unbundled Delhi Vidyut Board.

Amaravati power distribution network will have another unique feature – entire city will have underground cable network. Mumbai is the only other city which has a fully underground transmission network. Other states like Gujarat, Karnataka and Delhi have specific municipalities or neighbourhoods which have underground cabling but not entire cities.


Amaravati, which has been termed by chief minister N Chandrababu Naidu as “People’s Capital”, comprises of 27 villages. Under the land pooling scheme, farmers of all 27 villages gave their land to build the capital. They have been allotted their share of residential and commercial plots. These have been included in the planned city and the population is expected to grow to 3.55 million by 2050. According to official sources, at present there are seven substations with overhead transmission lines that are feeding Amaravati. However, as the capital is fully built and settled, this load is expected to increase manifold. A senior official, who did not wish to be identified, told ET, “The entire transmission network will be underground. The cabling which is overhead at present will also be underground. Ducts are being laid under the ground as we build roads in the capital.”