Amaravati, famous for the Amareswara temple, which is dedicated to Lord Shiva dates back to the 2nd century BCE and was once the capital of the Satavahanas and also the Pallava kings. Amaravati was a seat of Buddhism prior to the rise of Satavahanas, and a stupa and monastery were built there during the reign of Emperor Ashoka (269-232 BC) under Mauryan Empire.

In February 2014, the state of Andhra Pradesh was bifurcated, leading to need for a new capital city in successor state of AP. As per the AP Reorganization Act 2014, a new greenfield capital was to be developed for the state of Andhra Pradesh. Hence, it was planned to construct a new greenfield capital “Amaravati” through LPS (Land Pooling Scheme) with active involvement of people.

The concept of land pooling was adopted where farmers/land owners (over and above 25,000 unique farmers) were appealed to pool their land (over and above 30,000 acres) to fulfil the land requirement to set up the people’s capital in Amaravati. In return, Govt. of Andhra Pradesh promised to give them developed plots (residential and commercial) in a proportionate ratio of land pooled by them as per the predefined guidelines. The Government made the people a partner in the development, rather than follow often coercive land acquisition. To make the process of distribution of developed plots completely transparent and unbiased, GoAP decided to adopt dynamic allocation of plots through a lottery system.