[1][2] Initially, it was incorporated as Amaravati Metro Rail Corporation (AMRC), a Special Purpose Vehicle (SPV) for the implementation of the Vijayawada Metro Rail project.

[3][clarification needed] It was first proposed as a Mass Rapid Transit System in VGTM UDA, which was later changed into Amaravati Metropolitan Region Development Authority (AMRDA).

However, it was rejected by the Government of India in New Delhi due to financial issues.

The Government of Andhra Pradesh then opted for a Light Metro rail[5] system, but faced opposition from engineer E. Sreedharan, who was serving as an advisor for the central government in New Delhi regarding both metro projects.

E. Sreedharan stated that the Light Metro system would not meet the needs of Andhra Pradesh's capital city, Amaravati, so the memorandum of understanding (MoU) between APMRC and DMRC was revoked.