NBCC to Build New Andhra Pradesh Bhavan in New Delhi Under ₹105.5 Crore Agreement

The Government of Andhra Pradesh has signed a ₹105.5 crore agreement with state-owned NBCC (India) Limited to develop a new Andhra Pradesh Bhavan in New Delhi, marking an important step towards strengthening the state’s administrative infrastructure in the national capital. The project will be executed by NBCC on a turnkey basis and is expected to deliver a modern, efficient and future-ready government complex.

The Memorandum of Understanding (MoU) was signed between senior officials of the Andhra Pradesh government and NBCC in the presence of the company’s top leadership. The project has been estimated at ₹105.5 crore, excluding GST and project management consultancy charges. NBCC, a Navratna public sector enterprise under the Ministry of Housing and Urban Affairs, will oversee the planning, design and construction of the facility from start to finish.

According to NBCC, the proposed Andhra Pradesh Bhavan will have a built-up area of nearly 2.49 lakh square feet. The complex is being designed to serve as the state’s primary administrative and hospitality centre in New Delhi, providing improved facilities for government officials, public representatives, dignitaries and visitors from Andhra Pradesh.

State Bhavans play an important role in supporting the functioning of state governments outside their home states. Besides offering accommodation for ministers and officials, these buildings host official meetings, cultural events and administrative activities. As government operations become increasingly digital and service oriented, newer facilities are being planned with improved security, energy efficiency and modern public amenities.

The new Andhra Pradesh Bhavan is expected to replace ageing infrastructure with a contemporary complex that reflects the state’s development ambitions. The project also aligns with Andhra Pradesh’s wider efforts to strengthen governance and improve institutional infrastructure as it pursues investment across manufacturing, technology, logistics and urban development sectors.

For NBCC, the project further reinforces its position as one of India’s leading public sector construction and project management companies. The company has been involved in the delivery of government offices, educational institutions, housing developments, healthcare facilities and large public infrastructure projects across the country and overseas. Its responsibilities for the Andhra Pradesh Bhavan will include architectural planning, engineering design, tender management, construction supervision and project execution. The company will also provide maintenance support after completion of the project.

The agreement comes at a time when public infrastructure spending continues to receive strong policy support. Governments at both the Centre and state level are investing in administrative buildings, transport networks, public housing and institutional infrastructure to improve service delivery while generating employment and economic activity.

Construction of the new Bhavan is also expected to create opportunities for contractors, architects, consultants, engineers, material suppliers and other businesses associated with the building sector. Large government projects often generate demand across the construction value chain, supporting both direct and indirect employment during the execution phase.

Industry observers believe that investments in government infrastructure remain an important contributor to India’s construction sector. Modern administrative buildings not only improve operational efficiency but also create long-term public assets capable of supporting governance for decades.

Once completed, the new Andhra Pradesh Bhavan will provide the state with a larger and more modern presence in New Delhi. The development reflects a growing focus on upgrading public infrastructure while ensuring government institutions are equipped with facilities that meet present and future administrative requirements.