Amaravati ORR project budget rises to Rs 25,000 Crore

The estimated cost for the Amaravati Outer Ring Road (ORR) project has increased to Rs 25,000 crore following a change in its design and scope. This new budget is for the construction of a 190-km, ten-lane highway, which includes a six-lane main ORR and a two-lane service road on each side.

Previously, the project was estimated to cost Rs 16,310 crore with a land acquisition width of 100 meters. However, at the request of Chief Minister Chandrababu Naidu, the central government approved an increase in the land acquisition width to 140 meters to accommodate future expansion and the addition of service roads on both sides. This is a rare approval, as no other ORR project in the country has been sanctioned with such a wide land acquisition.

The proposals for the new budget have been sent to the Union Ministry of Transport and National Highways for approval. The project's budget will then move through various committees before receiving final approval from the Union Cabinet Committee on Economic Affairs.

The estimated Rs 25,000 crore budget includes Rs 5,600 crore for land acquisition alone. The state government has committed to contributing Rs 1,000 crore toward the land acquisition costs.

Additionally, the state government will support the project by covering an estimated Rs 2,000 crore in the form of a 9% state GST on construction materials and a full exemption from mining and sewerage fees.

Details regarding the required land have been submitted by the National Highways Authority of India (NHAI) to the collectors of NTR, Krishna, Eluru, Guntur, and Palnadu districts. These collectors are tasked with examining and approving the land acquisition details. So far, the Palnadu district has provided complete approval, while the Eluru district has been asked to make some changes to its submission. Officials are expecting to receive details from the remaining districts within two weeks to proceed with the project swiftly.