BCG recommends decentralised development for Andhra Pradesh

09 January 2020 Consultancy.in

Having been called in to conduct a review of development prospects in the state of Andhra Pradesh (AP), The Boston Consulting Group (BCG) has recommended that the state take a decentralised approach to development. The firm prescribes breaking the development process into six distinct regional blocks.

BCG was called in to clear up the debate around the government’s tri-capital development plan, which put forth Vishakhapatnam, Amravati and Kurnool as potential centres for the state. The plan was contested by the opposition as well as by the general public for a number of reasons.

For one, the construction of Amravati – initially touted as the new capital city – has engulfed more than 30,000 acres of farm and village land. Dissolving the city’s power, therefore, has not been a popular decision amongst residents of several villages that have made the contribution.

As a result, the state government has held off finalising the plan, waiting to have it reviewed by economic and development experts. BCG is part of this process, and the global management consultancy’s recommendations align with the tri-capital model put forth by the government.

BCG recommends decentralised development for Andhra Pradesh

BCG proposes the division of government function into distinct units: Secretariat, Governor, Chief Minister’s Office, Assembly, and High Court. The first three of these would be situated in Vishakhapatnam, the assembly would operate either in Vijayawada or Amaravati, and the High Court would run out of Kurnool. 

“The BCG report has taken into account economic, industrial, agricultural, service, infrastructure and social infrastructure issues. According to the report, the state would need to develop five freeways on a large scale with the existing highways and ports, airports,” said an AP government official.

BCG is among the most active in the consulting industry when it comes to supporting India's public sector with strategic and policy-related topics. Two years ago, the consultancy was appointed by India’s government planning body NITI Aayog to help devise and implement time-bound development projects.

The firm has also been significantly involved with the Indian Railways, supporting the latter with a comprehensive upgrade in services and infrastructure. BCG has further amassed expertise in India’s development sector, lending credibility to its assessment of Andhra Pradesh’s development prospects.


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