The Government of India has requested World Bank assistance to develop Amaravati as a new economic hub and state capital for Andhra Pradesh. Amaravati’s development offers an opportunity for fast-urbanizing India to model the planning of an inclusive, climate-resilient city.
Situated in a well-connected region along India’s East Coast Economic Corridor, Amaravati will be part of a broader metropolitan region that includes two cities, Vijayawada and Guntur. The government has prepared the masterplan for a 217 sq km city to accommodate 3.5 million people by 2050. Currently, about 100,000 people live in the Amaravati area.
World Bank support
Under the Amaravati Integrated Urban Development Program, the World Bank will support the first phase of the city’s development. The Program will help strengthen the institutions and build the capacity needed for an inclusive city that can serve as a growth hub for the state and create opportunities for its residents.
The Program has been developed based on consultations with a range of stakeholders, including local communities, as well as lessons from the World Bank’s engagement in the urban sector globally and in India. Lessons from Amaravati will, in turn, inform the development of other city projects across the country and influence India’s urban development journey.
Citizen-focused city institutions
The World Bank is bringing global expertise to help set up an accountable city governance and management structure that integrates citizen engagement and participation in city planning and development. It will help establish a new Unified Metropolitan Transportation Authority to plan and manage the city’s transport needs, and customer-focused utilities for basic services such as water supply and sewerage.
Catalyzing investment for job creation
World Bank financing aims to catalyze more than $600 million in private sector investment so that the city can generate new jobs and economic opportunities for its residents. The government estimates that Amaravati can potentially create 50,000 jobs over the next five years in sectors like construction, agro-processing, clean manufacturing, and services.
Promoting inclusion and gender-sensitive urban development
The Bank-supported Program will help the city’s residents access new opportunities through skill creation, particularly for women, and inclusive social and community development. Of an estimated 17,000 participants, 10,000 women will receive training.
Landless laborers who worked in the area will receive skills training and access to employment opportunities under the Program, apart from other ongoing government support such as pensions, interest-free loans for self-employment, and free health and education benefits.
The Amaravati Masterplan reserves 22 percent of the residential area for affordable housing schemes. The Program will support green and affordable housing including through a Fund that can mobilize the private sector.
Green, resilient infrastructure
The Program will develop climate-resilient infrastructure for the new city, including a 320-km arterial road grid served by low-carbon transport, 1,280 km of neighborhood roads, ducts for power and telecommunication connectivity, and city-wide systems for water supply, wastewater and stormwater drainage.
The Program will design a flood management system to help the city withstand future flooding risks. This will include nature-based solutions, reserving 30 percent of land as open spaces, creating retention reservoirs, and constructing robust flood protection infrastructure, along with early warning systems.
Innovative model for urban transformation
The government has assembled 90 percent of the land required for the city through an innovative land pooling scheme. Some 29,000 farmers voluntarily contributed agricultural land in exchange for residential and commercial plots in the new city serviced with core infrastructure like roads, water, and electricity. They also receive annual cash payments, health and education benefits, interest-free self-employment loans, and other benefits.
Where land in the existing villages is needed for core infrastructure, a negotiated settlement approach is offered. For people preferring not to use those approaches, land acquisition in accordance with national laws will apply.
Citizen participation and stakeholder feedback
The Program design has been informed by a comprehensive Environmental and Social Systems Assessment (ESSA) that was developed through extensive consultations with stakeholders. The state government and the implementing agency, Andhra Pradesh Capital Regional Development Authority (APCRDA), continue to engage proactively with the population in Amaravati. The Bank-supported Program will strengthen participatory mechanisms to guide city planning and development, and solicit inputs for livability and livelihood outcomes, especially for women, low-income groups, minorities and vulnerable groups. These include:
· A Citizens’ Committee to advise the APCRDA Board that will include women and youth members, representatives of interest groups such as farmers, businesses, landless laborers, as well as civic/community leaders, academia etc.
· APCRDA’s village-level offices and its cadre of community facilitators will engage with local communities on an ongoing basis.
· APCRDA will further improve the existing communication channels to create both physical and digital platforms to share ideas and suggestions across diverse group of stakeholders.
· APCRDA will partner with non-governmental organizations to facilitate the communications with the stakeholders and help monitor the effectiveness of participation.
Grievance redress mechanisms
There are multiple avenues available to citizens for submitting grievances:
· A single-window Public Grievance Redress Management System for the state through an online portal.
· Grievances can also be sent in through the APCRDA website or at any of the 11 village-level offices or the weekly public meetings.
· During Program implementation, APCRDA will strengthen the grievance management system by setting up a dedicated unit and holding regular grievance audits.
The Program will ensure continued meaningful consultation with all stakeholders and provide robust channels for resolution of any grievances and concerns.
Financing details: The $1.78 billion government program for the first phase of Amaravati’s development is supported by $800 million from the World Bank and $788.8 million from the Asian Development Bank.