Amaravati Capital Works in Andhra Pradesh Lag Behind Targets Despite Rs 42,728 Crore Investment

Amaravati, the planned capital city of Andhra Pradesh, is witnessing slower-than-expected progress in its large-scale construction projects despite significant investments and renewed momentum in recent months. According to contractor-wise work progress data, several key infrastructure works are falling short of their scheduled targets.

The Capital Region Development Authority has awarded around 90 infrastructure packages with a combined agreement value of approximately Rs 42,728.85 crore to multiple contracting agencies. These projects form the backbone of the capital city’s development plan and include roads, public infrastructure, government complexes and urban utilities.

However, data shows that while the planned cumulative physical progress across these projects was expected to reach 19.60 percent by now, the actual completion stands at only 9.72 percent. This means less than half of the scheduled work has been achieved so far.

Among the major contractors working on Amaravati projects, Nagarjuna Construction Company is handling 21 packages worth about Rs 9,330.5 crore. The company has recorded 11.61 percent progress against a target of 21.93 percent. Megha Engineering and Infrastructure Limited, which holds the highest value of works at around Rs 10,360.93 crore across 17 packages, has achieved only 4.86 percent progress compared to a scheduled target of 13.48 percent.

Similarly, Larsen & Toubro is executing six projects worth Rs 3,858.21 crore but has reported only 4.75 percent progress against a target of 22.32 percent. Another contractor, RVR, responsible for 13 packages valued at Rs 6,031.9 crore, has achieved 7.77 percent progress against a 16.20 percent target.

Interestingly, smaller contractors have shown relatively better performance. Firms handling smaller project packages have either matched or exceeded their scheduled targets, highlighting better mobilisation and faster execution capabilities.

Officials indicated that delays are largely due to slow mobilisation of manpower and machinery by contractors handling large project packages. Financial progress also reflects the slowdown, with work worth Rs 3,856.76 crore completed so far against a planned value of Rs 7,775.22 crore.

The Andhra Pradesh government and the Capital Region Development Authority continue to monitor the progress closely as Amaravati remains a flagship urban development project aimed at transforming the region into a modern administrative and economic hub.