Continuous reliance on loans to fund Amaravati project could strain the State’s finances for decades, says YSRCP president Y.S. Jagan Mohan Reddy.
| Photo Credit: Special Arrangement
YSR Congress Party (YSRCP) president Y.S. Jagan Mohan Reddy on Wednesday took potshots at Chief Minister N. Chandrababu Naidu, alleging large-scale corruption and financial mismanagement in the Amaravati capital project, while proposing the ‘MAVIGUN’ corridor as a cost-effective alternative development model.
Addressing the media, the former Chief Minister claimed that the NDA government had diverted massive borrowings for the Amaravati project, creating a financial burden on the State.
“Governance under Mr. Naidu had been reduced to unrestrained corruption and exploitation. Excessive spending on the capital project has started impacting the key welfare schemes,” he said.
Many welfare schemes, such as fee reimbursement, housing, healthcare, agricultural support, and expansion of medical colleges, have either slowed down or stalled due to resource diversion, he alleged.
Mr. Jagan said developing Amaravati on nearly one lakh acres could require around ₹2 lakh crore for creating basic infrastructure. How can the State bear such an expenditure while clearing pending dues, including ₹36,000 crore owed to government employees, he asked.
Highlighting borrowing patterns, he cautioned that continuous reliance on loans could strain the State’s finances for decades.
He alleged lapses in the tendering process, claiming that contracts previously cancelled were reassigned to the same firms.
He accused the government of suppressing criticism and using the Assembly for political targeting rather than meaningful debate, while questioning the non-convening of the Legislative Council over the Amaravati issue.
Mr. Jagan proposed the ‘MAVIGUN’ corridor, linking Machilipatnam, Vijayawada, and Guntur, as a cost-effective growth model.
“The MAVIGUN corridor, with existing infrastructure, could be developed into a major economic hub at a fraction of Amaravati’s projected cost, potentially saving nearly ₹1.9 lakh crore,” he said and suggested strengthening Visakhapatnam as an executive capital to generate revenue.
Reiterating that the YSRCP is not opposed to Amaravati, but to what he termed ‘unsustainable policies’, Mr. Jagan called for a more practical and balanced approach to development.
He also questioned the legal and political basis of the recent Assembly proceedings concerning the capital city. Mr. Jagan argued that the Constitution does not explicitly mention the term ‘capital’, instead refers to ‘seats of governance’.
The authority to determine a State’s capital lies solely with the State government, citing the Union government’s submissions before courts that it has no direct role in such decisions, he said.
Published – April 01, 2026 09:08 pm IST
