The Andhra Pradesh government has officially sanctioned the A.P. Capital Region Development Authority (APCRDA) to establish a Special Purpose Vehicle (SPV). This new entity, operating under the Companies Act, will be responsible for the comprehensive “development, execution, operation, and management of key projects throughout the Amaravati capital city and its surrounding region.”
This strategic move means that the responsibilities for ongoing and future capital city projects will now be distributed among the APCRDA, the Amaravati Development Corporation, and this newly formed SPV.
Among the significant undertakings slated for the SPV are major initiatives such as a greenfield airport, the construction of an NTR statue, the establishment of smart industrial zones, an iconic bridge, a dedicated Sports City, comprehensive riverfront development, a modern ropeway, and the Inner Ring Road (IRR). Furthermore, the SPV will also handle any additional special projects that the State government or the APCRDA may designate in the future.
It’s important to note that the majority of these proposed development projects assigned to the SPV are part of the second phase of the capital city’s expansion, falling specifically under the Land Pooling Scheme (LPS) 2.0.
S. Suresh Kumar, the Principal Secretary for Municipal Administration and Urban Development, issued a Government Order (G.O. MS No. 206) on October 7, 2025. This order specifies that the SPV will commence with an initial authorized capital of ₹10 crore, a figure that can be increased periodically by the SPV’s Board of Directors, subject to government approval.
Initially, the SPV will have a paid-up share capital of ₹1 crore, structured as 1,000,000 equity shares, each valued at ₹10.
The Government of Andhra Pradesh, through the Principal Secretary of the Municipal Administration & Urban Development Department, will be the dominant shareholder, holding a substantial 99.99% of the equity. The remaining 0.01% will be distributed among the APCRDA and other designated government officials or agencies, ensuring compliance with the Companies Act-2013 for the SPV’s official incorporation.
The SPV’s Board of Directors will include the Principal Secretary of MAUD, who will serve as the non-executive chairperson, alongside the Principal Secretaries of Finance, Energy, Transport, and Industries, and the Commissioner of APCRDA, all serving as directors.