Andhra Pradesh’s New Capital – Who are the Beneficiaries?

Ever since the announcement has been made by the AP Chief Minister Chandrababu Naidu regarding the development of Andhra Pradesh state’s new capital in Vijayawada-Guntur area, many developments have been taking place very swiftly. Few facts concerning AP’s capital that may be of your interest are as follows.

Farmers oppose to part the fertile lands

It is evident that AP government has decided to take the land from the farmers under Land Pooling System (LPS) for the construction of the capital city of AP. As part of it, a Grama Sabha was organized by the cabinet sub-committee at Rayapudi village of Tulluru Mandal. Nevertheless, this Grama Sabha received a flak from the farmers, against the proposed land pooling system to acquire the land from the farmers.

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Locations of Hyderabad City Center 40 Skyscrapers


Andhra pradesh's new capital

About 20% of the farmers strongly opposed to part their fertile land that yields crop all around the year. They chanted anti-slogans and asked the committee to go back. In order to part their land, they also have been demanding for some extra paybacks. The demand of the farmers is – allocation of 1200 sq yard compensatory land in residential area, instead of the proposed 1,000 sq yard allocation by the government. The farmers have been also demanding for the allocation of 200 to 250 sq yard land in the commercial zone.

In order to overcome this problems and to stimulate the farmers, who are not satisfied with the government package, the state government is planning to send a team of Sarpanchs and other grassroots level democratic functionaries on a study tour to Singapore. The purpose of planning to send them to Singapore is – to let them know how a developed city state looks like. Subsequently, it would inspire them and allow to part their land, to undertake similar developments in their villages.

Casual labor becomes a millionaire

Some people of the Tullur Mandal are turning into millionaires, with the announcement of AP’s capital region. Recently, a casual labor sold his 1.25 acres of land for 80lakhs per acre and earned a huge sum of Rs. 1cr, through the land selling. Actually, he thought of selling the land some days back, but because of some issues he couldn’t sell the land. Luckily, the announcement of AP’s capital made him a millionaire.

AP’s new capital will be free from floods?

According to the report submitted by the AP State Remote Sensing Application Center of Department of Planning on possible inundation, there will be a flood threat for Tullur Mandal, if there arises a breakage in Nagarjunasagar Dam and Prakasham barrage. Nevertheless, the Irrigation Minister Devineni Uma Maheswara Rao informed that river bunds will be constructed with national standards to the proposed capital city so as to make the AP’s new capital free from flood threat.

AP’s capital opens door for black money

Buyers are trying to invest on the lands around the capital region and trying to convert their black money to white. Due to this, the cost of the lands surrounding the proposed capital of AP is giving rise to black money. As per the government records, the cost of land in these areas is Rs 4 to Rs 12 lakh per acre, but the market rate of the land is ranging from Rs 80 lakhs to 1 crore. This results in conversion of about Rs 90 lakhs/acre black money to white. Investors are making a queue to Tullur and Mangalagiri to buy the lands from the farmers. They plan to give it to the state government, subsequently. According to an official report, the land registrations in these localities have increased a lot. Most of the investors are from various parts of AP and Hyderabad. Also, investors from Telangana are running behind the farmers who are land holders surrounding the AP capital perimeter. The developments took a pace, after the announcement of the boundaries to AP’s proposed capital. In some or other way, the farmers, buyers and government are being benefited by this. Nevertheless, in this entire process, a huge amount of black money will change the hands and pumped out.

Fear of VGTM-UDA staff for their future

Recently, the government had taken a decision to replace the Vijayawada-Guntur-Tenali-Mangalagiri Urban Development Authority (VGTM-UDA) with the Capital Region Development Authority (CRDA). Due to this, the staff and retired employees of VGTM-UDA are feared of their future, for it is likely that their duties and responsibilities will be transferred to CRDA; and they don’t have a clarity on the transfer, because it includes many legal complications. So, these people have been seeking a clarity from the government.

Red carpet for the MNCs

The Chief Minister Naidu took the reference of Prime Minister’s aim to make India, a manufacturing hub in the world, and said that the PM is paving a red carpet to Multinational Companies (MNCs). In this milieu, Naidu said that he wanted to make AP, the hub for all MNCs coming into India. He also announced that his government will take this project as “Make in India-Made in AP”.

You may also like to read:
Andhra Pradesh’s New Capital: An Overview
Singapore to Design Andhra Pradesh’s New Capital

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