Amaravati as Andhra Pradesh Capital – 2026 Amendment Bill Key Provisions

Andhra Pradesh Capital Latest News

• Parliament has passed the Andhra Pradesh Reorganisation (Amendment) Bill, 2026, recognising Amaravati as the sole capital of Andhra Pradesh. 

Background of Andhra Pradesh Reorganisation

• The state of Andhra Pradesh was bifurcated in 2014 through the Andhra Pradesh Reorganisation Act, 2014, leading to the creation of Telangana and residual Andhra Pradesh.
• As per the Act, Hyderabad was designated as the joint capital for both states for a period of up to 10 years. 
• After this transition period ended in June 2024, Hyderabad became the exclusive capital of Telangana, requiring Andhra Pradesh to establish its own capital. 
• Following bifurcation, the Andhra Pradesh government under N. Chandrababu Naidu identified Amaravati as the new capital and began developing it as a greenfield capital city.

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Evolution of Capital Debate in Andhra Pradesh

• The capital issue in Andhra Pradesh has been politically contested.
• After coming to power in 2019, the YSR Congress Party proposed a three-capital model with Visakhapatnam as the executive capital, Amaravati as the legislative capital, and Kurnool as the judicial capital. 
• However, in 2022, the Andhra Pradesh High Court ruled that the capital could not be shifted from Amaravati, citing a lack of legislative competence to reverse earlier policy decisions. 
• Subsequently, with the return of the National Democratic Alliance government, the state reaffirmed its commitment to Amaravati as the sole capital.

Key Features of the Amendment Bill

• The Andhra Pradesh Reorganisation (Amendment) Bill, 2026, introduces specific legal provisions to resolve the capital issue.
• The Bill amends Section 5 of the Andhra Pradesh Reorganisation Act, 2014.
  It explicitly recognises Amaravati as the sole and permanent capital of Andhra Pradesh.
• It inserts the phrase “at Amaravati” to formally designate the capital location.
  It also clarifies that Amaravati includes areas notified under the Andhra Pradesh Capital Region Development Authority Act, 2014. 
• Importantly, the Bill gives retrospective effect from June 2, 2024, the date when Hyderabad ceased to be the joint capital.

Rationale Behind the Amendment

• The amendment was considered necessary to remove ambiguity regarding the capital of Andhra Pradesh.
• Since the original 2014 Act governs the creation and structure of the state, any change in capital status requires modification of this central legislation.
• The state government argued that statutory recognition would ensure policy stability and prevent future governments from altering the capital location arbitrarily. 
• Thus, the amendment aims to provide long-term certainty in governance and infrastructure planning.

Political and Legal Dimensions

• The passage of the Bill saw broad political consensus in Parliament, with most parties supporting it.
• However, the YSR Congress Party opposed the Bill in its current form. It raised concerns regarding unresolved issues related to the Land Pooling Scheme, under which farmers had contributed land for capital development. 
• The party demanded clear timelines and safeguards for compensating farmers and ensuring their interests are protected.
• The legal dimension of the issue is also significant, as earlier disputes had reached the Supreme Court. The withdrawal of pending litigation aligns with the current policy direction.

Implications of Declaring Amaravati as the Sole Capital

• The decision has multiple governance and economic implications.
  • Administrative Clarity. It resolves long-standing uncertainty regarding the capital location. 
  • Investor Confidence. Clear policy direction is likely to boost infrastructure investment in Amaravati. 
  • Urban Development. Focused development of a single capital can enhance efficiency in planning and execution. 
  • Political Stability. It reduces the scope for future policy reversals on the capital issue. 
• At the same time, concerns regarding regional balance and equitable development across the state remain relevant.

Source: TH