Hyderabad: Andhra Pradesh will name its future capital Amaravati after an ancient civilization that flourished on the banks of the river Krishna, the state government said on Wednesday.

The historical town is located about 15km from Thullur, the epicentre of the state’s new capital, which will be built between Vijayawada and Guntur towns.

The Andhra Pradesh cabinet gave its consent to the name, at a cabinet meeting on Wednesday.

“We felt it is best we associate the new capital with a name that has historical significance," chief minister N. Chandrababu Naidu said after the cabinet meeting. “We plan to restore the past glory," Naidu said in Telugu. “Just as history is important, future generations should remember the capital as a world-class, modern city," Naidu said.

Andhra Pradesh, which has been trying to recover from the loss of its erstwhile capital and economic engine, Hyderabad, to Telangana after its bifurcation last year, plans to attract investors to a spanking new capital.

“The long-lost historical essence of the place will relive with the name of the capital," Vasudevan Iyer, Hyderabad branch director of real estate consulting firm Knight Frank India Pvt. Ltd, said.

Amaravati was the capital of the Satavahanas, who ruled a great part of modern-day Andhra Pradesh for 450 years. Amaravati was also a prominent centre on the Buddhist map. It is among 12 heritage cities chosen by the Union government in December for a revitalization project.

Singapore’s Jurong International Holdings Pte Ltd and Surbana International Consultants Pte. Ltd have been mandated to come up with a master plan for the new capital.

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