Work in the Amaravati capital region in Andhra Pradesh has come to a standstill. Even though no specific orders have been issued regarding the capital region, general orders issued by the new chief minister YS Jaganmohan Reddy apply largely to Amaravati. 

“Regarding works which were sanctioned before 1 April, 2019 and have not yet been grounded, the new government has ordered that the orders be cancelled. In cases where less than 25 per cent of the work has been done, it has been ordered that the payments be stopped. They will now need to get revised sanction from the new government. Most of the works being undertaken in Amaravati fall under the latter category,” a senior official of the AP Capital Region Development Authority (APCRDA) told Filter Kaapi. 

With payments stopped, contractors have put work on hold in Amaravati. A final decision regarding specific works in Amaravati is likely to be taken after Jagan meets APCRDA officials on 6 June. The flats for government officers are in an advanced stage of construction.

Under the Telugu Desam regime, a temporary Secretariat and Assembly had been constructed in Velagapudi village, 16 km from Vijayawada. Seniors in the YSR Congress are of the view that a cash-strapped state need not splurge on constructing extravagant buildings and instead use the funds for welfare schemes. Velagapudi then may become the permanent home to the Andhra administration. Chandrababu Naidu had estimated that constructing a world-class capital at Amaravati will cost Rs 50000 crore. 

Jagan in his first press conference had called Amaravati a scam and hinted at ordering a probe into it. He alleged that TDP honchos and their benamis indulged in insider trading to make big money.