Amaravati ‘Self-Finance’ Claim Is a Blatant Lie: Sajjala Ramakrishna Reddy

YSR Congress Party State Coordinator Sajjala Ramakrishna Reddy on Sunday strongly criticised Chief Minister N. Chandrababu Naidu , calling his claim that Amaravati is a “self-financing” project a “blatant lie.” He alleged that Naidu was misleading the public with “fabricated calculations” regarding the capital city’s financial model.

Addressing the media, Sajjala said that even if one were to accept Naidu’s projections, leaders including Nara Lokesh and Naidu himself have stated that it would take 15 to 20 years for land prices in Amaravati to reach ₹20 crore per acre after development. “By then, the interest burden alone will exceed ₹3 lakh crore . To service that interest, further borrowing would be inevitable. Is this not a massive burden on the state?” he questioned.

He asserted that instead of Naidu’s “illusionary” model, the phased, low-cost capital development approach proposed by former Chief Minister Y.S. Jagan Mohan Reddy was more sustainable and beneficial for the state.

Detailing his calculations, Sajjala said the government’s claim that Amaravati can sustain itself financially is flawed. He pointed out that even if the 5,000 acres of government-owned land were sold at ₹7,500 per square yard , the total revenue would be only about ₹18,000 crore , whereas expenditure has already exceeded that amount.

He further alleged discrepancies in land valuation, stating that while Naidu claims the land is worth ₹10 crore per acre , official records place its value at only ₹2.91 crore per acre . “This is a clear attempt to project non-existent profits and deceive the public,” he said.

Sajjala also warned about the growing debt burden, noting that contracts worth over ₹50,000 crore have already been awarded for Amaravati, and an additional ₹2 lakh crore would be required for infrastructure development. The annual interest on such borrowing, he said, would amount to ₹15,000 crore to ₹20,000 crore .

He cautioned that this heavy financial burden could severely impact the state’s economy and urged people to take note of what he described as the government’s attempt to push Andhra Pradesh into a “debt trap” in the name of Amaravati .