Amaravati, Nov 7: The Chandrababu Naidu government has increased the estimated cost of facade works for the Amaravati Secretariat and HOD office buildings from ₹2,540 crore to ₹4,830 crore. The revised estimate adds another ₹2,290 crore to the project cost, triggering questions over the government’s spending and financial transparency.
The Andhra Pradesh government issued fresh orders approving the revised administrative sanction based on the AP CRDA Authority’s Resolution No. 728/2026. The proposal was reportedly approved at an authority meeting chaired by Chief Minister Chandrababu Naidu on October 28.
Why Was the Project Cost Increased?
The revised estimate covers facade glazing, cladding, crown structures, atriums, canopies, skylights, column cladding and Building Maintenance Units (BMUs) for the five Secretariat towers.
The government has divided the works into three packages:
- Package 1: GAD Tower – ₹1,094.60 crore
- Package 2: Towers 3 and 4 – ₹1,790.20 crore
- Package 3: Towers 1 and 2 – ₹1,945.20 crore
The government cited rising aluminium prices, increased material requirements, imported stainless-steel panels, transportation, installation and specialised labour costs as reasons for the revision. Fire safety arrangements, quality testing, a three-year defect liability period and ten-year maintenance responsibilities were also cited.
However, the nearly 90% increase in the estimated cost has raised questions about the original project calculations.
Questions Over the Cost Estimates
According to reports, the CRDA invited quotations from three companies to finalise the Standard Schedule of Rates (SSR) for the facade works. These included Alumech Facade Private Limited from Mumbai, Teamwork Glass and Aluminium from Hyderabad and Interni International Private Limited from Bengaluru.
The CRDA reportedly identified Alumech Facade as the lowest bidder.
Based on the quotations and reference costs from a similar building project in Shenzhen, China, the Board of Chief Engineers (BOCE) finalised an average rate of ₹80,892 per square metre, including GST, on May 19.
YSRCP leaders and critics have questioned the justification for the subsequent cost increase. They argue that the government must explain how the estimate rose by ₹2,290 crore and provide detailed information about material prices, labour charges, transportation costs and revised calculations.
Amaravati Secretariat Project Cost Crosses ₹13,294 Crore
The expenditure on the five permanent Secretariat towers has already reached substantial levels.
The major allocations include:
- Main construction works: ₹4,688.83 crore
- Electrical, HVAC, fire safety, lifts and plumbing works: ₹2,316.88 crore
- Roads and drainage infrastructure: ₹1,057.62 crore
- Facade works: ₹4,830 crore
- Architectural and design works: ₹401.54 crore
According to the figures cited in reports, the overall estimated expenditure on the Secretariat towers has reached ₹13,294.87 crore.
The five towers have a total built-up area of approximately 4.85 lakh square metres, or 52.20 lakh square feet. Based on these figures, the estimated cost works out to around ₹25,466 per square foot.
YSRCP Seeks Transparency Over Additional ₹2,290 Crore
The sharp increase in the facade works estimate has triggered criticism from the YSRCP, which has questioned the government’s financial decisions and demanded accountability for public expenditure.
The party has raised concerns over the reasons behind the revised estimates and the selection of contractors. Allegations of excessive project costs and possible irregularities have also emerged.
The government must clarify why the original estimate of ₹2,540 crore was insufficient and what specific changes justified the additional ₹2,290 crore.
With the total Secretariat project expenditure crossing ₹13,294 crore, the key question is whether the revised costs are technically justified and financially reasonable.
The government should make the detailed cost calculations, tender documents, contractor details and technical assessments available to the public.
The issue is no longer just about the construction of Amaravati’s Secretariat towers. It is also about transparency, accountability and the responsible use of thousands of crores in public money.
