Union Agriculture Minister Shivraj Singh Chouhan on Wednesday, June 10, 2026, welcomed the Union Cabinet's approval of two major central infrastructure projects for Amaravati, the capital of Andhra Pradesh, crediting the decision to the leadership of Prime Minister Narendra Modi.

What Was Approved

The Cabinet cleared two projects: the Central Government General Pool Office Accommodation (CGGPOA), to be built at a cost of ₹1,299.08 crore, and the General Pool Residential Accommodation (GPRA), sanctioned at ₹1,234.91 crore. Together, the two projects represent a combined central outlay of over ₹2,534 crore for Amaravati's administrative and residential spine. Chouhan described the approvals as providing 'new strength to modern administrative and residential infrastructure' in the planned capital.

Context

Amaravati has been envisioned as a greenfield, world-class capital city for the residuary state of Andhra Pradesh following the bifurcation that created Telangana under the Andhra Pradesh Reorganisation Act, 2014. That legislation also laid the statutory basis for central assistance toward building the new capital's core infrastructure. The two projects now cleared fit squarely within that framework, with the central government stepping in to fund key administrative and housing assets in the city.

Policy Backdrop

The GPRA programme is a longstanding central government mechanism under which the Central Public Works Department (CPWD) constructs and manages residential complexes for central government employees posted across the country. Extending it to Amaravati signals the Centre's intent to operationalise a full-fledged administrative ecosystem in the city. Both projects are to be built to environment-friendly and energy-efficient standards, in line with the broader push for green-building norms in centrally funded construction. Chouhan noted that the projects would promote 'sustainable development, inclusive infrastructure, and employment generation.'

Stakeholders and Impact

The immediate beneficiaries are central government employees who will be posted in Amaravati and require coordinated office space and housing. Beyond the bureaucratic apparatus, the projects are expected to improve coordination among central government offices, raise administrative efficiency, and expand civic amenities for residents of the capital region. Construction activity on this scale is also projected to generate significant direct and indirect employment in Andhra Pradesh. Chouhan emphasised that the projects would help establish Amaravati as a 'modern, well-organised, and future-oriented capital.'

What's Next

Attention will now shift to the issuance of formal project sanction letters and the commencement of CPWD tendering processes for both complexes. The pace of tendering and contractor selection will determine when ground is broken on the two sites. Broader progress on Amaravati's master plan — including state-funded civic infrastructure and the long-pending High Court building — will set the context in which these central projects take shape. The Cabinet approvals add fresh momentum to a capital-building exercise that has seen multiple political and legal interruptions since 2014, and they reinforce the Centre's commitment to seeing a functional administrative capital emerge in Andhra Pradesh.