Amaravati bill to restore investor confidence, unlock Rs 56,000-crore for development: Pemmasani

New Delhi: Union Minister of State for Communications and Rural Development Pemmasani Chandra Sekhar Wednesday said that the passage of the Andhra Pradesh Reorganisation (Amendment) Bill, 2026, in the Lok Sabha today as a watershed moment that would revive investor confidence and unlock Rs 56,000-crore worth of infrastructure development.

The bill passed by the Lok Sabha today by voice vote, would confer legal sanctity to Amaravati as the sole capital and remove the long-pending structural uncertainty that has impacted governance, investment, and growth over the years.

Pemmasani addressed Parliament in Telugu, an official language of Andhra Pradesh and Telangana.


The Bill will be tabled in Rajya Sabha on Thursday.


Also Read: Bill to recognise Amaravati as sole capital of Andhra introduced in Lok Sabha

Further, the minister said that Amaravati is envisaged as a global-standard city and the principal growth engine of Andhra Pradesh. With 91 major infrastructure projects worth over ₹56,000 crore already underway—supported by leading national and international institutions—the formal recognition of Amaravati is expected to accelerate investments, generate large-scale employment, and significantly enhance the state’s economic trajectory.

Following the absence of a clearly-designated capital over the past several years, the state was marred with administrative ambiguity, delays in infrastructure execution, and dismal investor confidence.

The amendment provides a clear, stable, and forward-looking framework, reaffirming the vision of a single, world-class capital in alignment with the original spirit of the state’s reorganisation, accordinbg to a statement.

The minister also said that capital cities play a critical role in driving economic performance, with major cities contributing a substantial share to their respective state economies. "With Amaravati as its nucleus, Andhra Pradesh is poised to emerge as a dynamic hub of governance,

commerce, and innovation."

The Amaravati model, built on voluntary land pooling, according to him, stands as a pioneering example of participatory and inclusive development, where farmers have become stakeholders in the state’s urban future. The innovative approach has drawn national attention as a replicable framework for equitable growth.

Earlier, the Andhra Pradesh Chief Minister's Office said that the move would provide statutory clarity to the capital status, aligning with the vision of the TDP-led NDA government.

Following the formation of Telangana as a separate state in 2014, Hyderabad became a common capital for Telangana and Andhra Pradesh for a period of ten years, with a provision to have a new capital for Andhra Pradesh.

On March 28, the Andhra Pradesh Legislative Assembly unanimously passed a resolution supporting Amaravati as the sole capital.