The Andhra Pradesh government announced that it has withdrawn Andhra Pradesh Decentralisation and Inclusive Development of All Regions Act, 2020. In the Assembly Session, Chief Minister YS Jagan Mohan Reddy said that a total of Rs. 2 crore will be needed for providing basic amenities per acre, so for 50,000 acres, nearly Rs. 1 lakh crore has to be spent. He further stated that there is no hatred towards Amaravati and added that he also owns a house in the place.

Buggana Rajendranath Reddy, the Minister for Finance, Planning and Legislative Affairs of the state government, introduced the AP Decentralisation and Inclusive Development of All Regions Repeal Bill, 2021 which refers to the AP Decentralisation and Inclusive Development of All Regions Act, 2020 as well as the AP Capital Region Development Authority Repeal Act, 2020.

He said that the construction of capital is not a Real Estate business. He criticized the capital plan introduced by the then Chief Minister Chandrababu Naidu.

He also said that Coastal Andhra Pradesh was not named as the backward place in the Srikrishna Committee report. Buggana further asserted that the Sivarama Krishnan committee prepared by the Expert Committee appointed by the Government of India, Ministry of Home Affairs under section 6 of the AP Reorganisation Act, 2014, a study of various alternatives regarding new capital for the Andhra Pradesh stated that decentralisation is important for the development of the state.