The Andhra Pradesh government is preparing to introduce a comprehensive administration and institutional framework for Amaravati after the Centre granted statutory status to it as the capital of the state, people familiar with the development said.

As part of the exercise, the Andhra Pradesh Capital Region Development Authority (APCRDA), which is presently overseeing the construction of various works in Amaravati, has called for tenders to appoint a consulting firm to design the administrative model for the capital city.
“The request for proposals for selection of the consultancy will be accepted till April 16. The selected consultant will be tasked with preparing a roadmap to transition Amaravati from its current development phase into a fully functional and operational capital city,” a senior official said.
The proposed administrative framework seeks to draft new laws specifically for the administration of Amaravati as the state capital. “The existing APCRDA Act and related legal provisions are likely to be amended to suit the requirements of a full-fledged capital city administration,” he said.
The consultancy is expected to present a model that would make Amaravati financially sustainable in the long term through various methods, including attracting private investment and involving Public-Private Partnership (PPP) projects in the capital region.
{{/usCountry}}The consultancy is expected to present a model that would make Amaravati financially sustainable in the long term through various methods, including attracting private investment and involving Public-Private Partnership (PPP) projects in the capital region.
{{/usCountry}}The consultant will prepare a detailed report to assess the city’s financial position, including the value of available assets and the extent of liabilities. Based on this assessment, it will present a road map for the government to determine user charges, taxes and other revenue mechanisms required for the governance and maintenance of the capital city.
“It will also explore the capital markets for debt financing. The consultant is also expected to propose mechanisms for participatory governance and coordination with other state institutions. A comprehensive plan will be prepared to ensure stable revenue generation for the future administration of Amaravati,” he said.
The roadmap for the administration of Amaravati capital city will be prepared in three phases: construction phase, operations phase and management phase. “Once Amaravati takes a concrete shape, there will be a more formal capital city governance structure,” the official said.
In line with the 74th Constitutional Amendment, a report will also be prepared on the formation of a capital city governance act. Apart from this, a special coordination mechanism is likely to be established to improve convergence between state government departments and capital region institutions.
The government is also placing special emphasis on digital governance as part of the capital city administration model. In addition, a dedicated human resources policy is being planned for Amaravati’s governance structure, the official added.