Amaravati To Be First Integrated Financial City: Nirmala

VIJAYAWADA: Union finance minister Nirmala Sitharaman has announced that Amaravati is set to become the nation’s first integrated financial city that would host the regional headquarters of 15 public sector banks and insurance companies.

This, she said, would strengthen the state capital’s economic foundation and boost regional development, she said on Friday.

Sitharaman expressed high optimism as the development work of Amaravati has been restarted with renewed vigour by the present state government. Creating a new capital city, she said, is a rare and significant undertaking for the country.

Addressing an event to lay the foundation stone for the bank and insurance company cluster, she described Amaravati’s construction as akin to a “yagna” (penance), a collective effort requiring financial stability and broad-based support. She lauded the sacrifices of farmers who gave their land for the capital’s development and urged banks to ensure they face no difficulties in future.

The Union minister emphasized that banking services should go beyond just Kisan Credit Card loans and offer wider financial benefits that can uplift the farming community and the middle class.

In her comments on the Purvodaya scheme aimed at developing Rayalaseema’s nine districts, Sitharaman applauded the state government’s planning of projects worth nearly `39,000 crore for these areas, focusing on development of roadways, irrigation and agricultural infrastructure.

She urged banks to facilitate marketing of horticultural produce from these regions to other states, just like fruits and coconuts from Maharashtra and Tamil Nadu are transported to metros like Delhi and Mumbai.

Besides services like extension of credit, she called upon banks to encourage food processing, packing and cold chain industries to support farmers’ incomes and reduce post-harvest losses.

Sitharaman also highlighted futuristic activities in Andhra Pradesh, including the Artificial Intelligence training centers being planned across districts, in collaboration with the Indian Institute of Astrophysics for advancing astrophysics research.

The Union minister advised the government's strategic focus on the rare earth minerals industry, encouraging Andhra Pradesh’s participation. She expressed hope that Amaravati would be transformed into a leading futuristic capital city within the next 18 months, with plans like building a planetarium in Amaravati aligning with the heritage of scientific thinkers like Acharya Nagarjuna from the region.

Sitharaman stressed the importance of integrated developmental ideas by banks and past successes such as the "Mahila Sakhi" programme, which empowered women as insurance agents, bringing significant benefits.

She said the establishment of numerous banks’ regional headquarters in Amaravati marked an unprecedented milestone not only for the city but for India’s financial landscape, reinforcing Amaravati as a beacon of economic and infrastructure growth.

“With Prime Minister Narendra Modi’s direct involvement and a clear roadmap for development, Amaravati represents the renewed vision of a futuristic, economically vibrant capital city that roots its growth in farmer welfare, financial inclusivity, technological advancement, and infrastructural excellence,” Sitharaman added.