The Andhra Pradesh government is preparing to provide a comprehensive administrative and institutional framework for Amaravati after the Center granted it legal status as the state capital, people aware of the developments said.

As part of this process, the Andhra Pradesh Capital Region Development Authority (APCRDA), which is currently overseeing the construction of several businesses in Amaravati, has invited bids to appoint a consultancy firm to design the administrative model for the capital.
“The request for proposals to select the consulting firm will be accepted till April 16. The selected consultant will be tasked with preparing a roadmap to take Amaravati from the current development stage to a fully functioning capital city,” a senior official said.
The proposed administrative framework seeks to formulate new laws for the administration of Amaravati as the state capital. “The existing APCRDA Act and related statutory provisions are likely to be amended to suit the requirements of a complete administration of the capital city,” he said.
The consultancy is expected to introduce a model that will make Amaravati financially sustainable in the long term through various ways, including attracting private investment and engaging public-private partnership projects in the capital region.
The consultant will prepare a detailed report to evaluate the city’s financial situation, including the value of available assets and the size of liabilities. Based on this assessment, it will provide a roadmap for the government to determine user fees, taxes and other revenue mechanisms needed to manage and maintain the capital.
“He will also explore capital markets for debt financing. The advisor is also expected to suggest mechanisms for participatory governance and coordination with other state institutions. A comprehensive plan will be prepared to ensure stable revenue generation for future Amaravati administration,” he said.
The roadmap for managing the Amaravati capital city will be prepared in three phases: construction phase, operations phase, and management phase. “Once Amaravati takes concrete shape, there will be a more formal structure for the administration of the capital,” the official said.
In keeping with the 74th Constitutional Amendment, a report will also be prepared on the formation of the Metropolitan Administration Code. Apart from this, a special coordination mechanism is likely to be established to improve convergence between state government departments and metropolitan area institutions.
The government is also placing particular emphasis on digital governance as part of the capital management model. In addition, a dedicated human resources policy is being planned for the Amaravati management structure, the official added.

