Union Road Transport and Highways Minister Nitin Gadkari announced on Wednesday, June 10, 2026, that the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved two major central government infrastructure projects in Amaravati, Andhra Pradesh, with a combined estimated cost of over ₹2,533 crore.

What Was Approved

The Cabinet cleared the development of a Central Government General Pool Office Accommodation (CGGPOA) at an estimated cost of ₹1,299.08 crore, with a built-up area of 23.25 lakh square feet. Alongside this, a General Pool Residential Accommodation (GPRA) project was approved at an estimated cost of ₹1,234.91 crore, covering a built-up area of 31.30 lakh square feet. Together, the two projects represent one of the largest single-round central investments in Amaravati's administrative infrastructure.

Context

Amaravati was designated the capital of the newly formed state of Andhra Pradesh following the Andhra Pradesh Reorganisation Act of 2014, which bifurcated the erstwhile united state. Prime Minister Modi laid the foundation stone for Amaravati in 2015, signalling early central commitment to building the greenfield capital. The approval of General Pool Accommodation — office and residential complexes maintained by the central government for its own employees — is a standard but significant step in establishing a full federal administrative presence in a new capital.

Central funding for such projects in state capitals is part of a broader post-bifurcation stabilisation framework. Successive cabinets have approved similar CGGPOA and GPRA schemes in new or relocated administrative centres to ensure that central government departments can function effectively from the state capital.

Policy Backdrop

The General Pool Accommodation system is administered by the Central Public Works Department (CPWD), which handles tendering, construction, and maintenance of office and residential stock for central government employees across the country. Approvals of this scale typically follow a period of alignment between the central government and the concerned state on capital-city planning and land allocation. Andhra Pradesh has seen renewed momentum on Amaravati's development in recent years, making central investment in core administrative infrastructure a logical next step.

Gadkari described the decisions as 'a significant step towards strengthening Amaravati's infrastructure, enhancing administrative capacity, and supporting its emergence as a modern governance hub.'

Stakeholders and Impact

The primary beneficiaries are central government employees posted in Andhra Pradesh, who currently lack purpose-built office and residential facilities in the capital. The projects are also expected to accelerate the relocation of central ministries and departments to Amaravati, reducing dependence on makeshift arrangements in Vijayawada and other nearby cities. For the state administration, a stronger central presence in the capital city reinforces Amaravati's status as a functioning seat of government.

What's Next

The immediate focus will shift to CPWD tendering and the award of construction contracts for both projects. The scale of the two complexes — together covering over 54 lakh square feet of built-up area — means construction is likely to proceed in phases. Further Cabinet notes on connectivity, civic utilities, and related infrastructure for Amaravati are expected as the capital-building programme gathers pace.