3. Statutory Recognition of Amaravati as Andhra Pradesh’s Sole Capital

The Lok Sabha has passed the Andhra Pradesh Reorganisation (Amendment) Bill, 2026, marking a definitive end to the years of administrative and legal uncertainty regarding the state\'s capital. • Statutory Status: The Bill formally amends the Andhra Pradesh Reorganisation Act, 2014, to recognize Amaravati as the \'sole and permanent\' capital of the state, providing it with legal sanctity that was previously missing. • Retrospective Effect: Once enacted, the law will come into force with effect from June 2, 2024, the date marking the end of the 10-year period during which Hyderabad served as the common capital for Telangana and Andhra Pradesh. • Reversal of Three-Capital Model: The legislation effectively forecloses the \'decentralized\' model proposed by the previous government, which sought to distribute power across three capitals: Visakhapatnam (Administrative), Amaravati (Legislative), and Kurnool (Judicial). • Bipartisan Support & Consensus: The Bill saw support from the Treasury benches and the principal opposition party, Congress, reflecting a broad parliamentary consensus on ensuring stability for the state’s urban and economic planning. • Economic & Infrastructure Push: By providing \'statutory clarity,\' the Bill aims to restore investor confidence in the Amaravati project, which encompasses a 217 sq km region and includes massive infrastructure works worth over ₹90,000 crore. • Protection of Stakeholders: The debate highlighted the plight of farmers who pooled 34,000 acres of land for the capital; the new legal framework is expected to streamline the fulfillment of promises made to these landholders. Key Definitions • Capital City: The seat of government in a state or nation, usually housing the executive, legislative, and judicial branches. • Statutory Backing: Legal authority or recognition derived from an Act passed by the Parliament or State Legislature, making the provision binding and difficult to alter through mere executive orders. Constitutional & Legal Provisions • Article 3 & 4: Empower Parliament to form new states and make supplemental, incidental, and consequential provisions, including the designation of capitals. • Andhra Pradesh Reorganisation Act, 2014: The parent legislation that facilitated the bifurcation of Andhra Pradesh. Section 5 of this Act originally designated Hyderabad as the joint capital for a period not exceeding 10 years. • Entry 32, List II (State List): Relates to \'Public works, lands and buildings vested in or in the possession of the State,\' which gives states the primary role in developing their capital. • Doctrine of Promissory Estoppel: A legal principle relevant to the Amaravati case, where the government is held to its promises made to farmers who gave up land based on the assurance of a developed capital city. Conclusion: The passage of the 2026 Amendment Bill is a landmark moment in India\'s federal history, as it is one of the rare instances where Parliament has intervened to settle a state’s capital dispute via legislation. While the \'three-capital\' model was argued on the grounds of regional equity, the \'sole capital\' model at Amaravati is now legally cemented to ensure administrative efficiency and continuity. This move balances the state\'s developmental aspirations with the need for a stable, long-term governance hub. UPSC Relevance • GS Paper II (Polity & Governance): Issues related to federalism, \'Statutory, regulatory and various quasi-judicial bodies,\' and the powers of Parliament under Articles 3 and 4. • GS Paper III (Economy & Infrastructure): Urban planning, land pooling models (Amaravati model), and the impact of policy uncertainty on regional investment and ease of doing business.