Andhra Pradesh, which lost Hyderabad to Telangana, is planning a new capital near Vijayawada at an estimated cost of over Rs 13,500 crore but hurdles have cropped up over land pooling issues with farmers.

The ambitious capital city of Amaravathi, the seat of power of the ancient Satahavanas Kings, 80 km from Vijayawada, has been zeroed upon by the Andhra Pradesh government, which has worked out the plan with a Singapore firm and the public sector National Building Construction Corporation (NBCC).

Thirty—three thousand acres of land, mostly agriculture, is being acquired by the government from farmers in coastal Guntur and Krishna districts for the new capital, which will have a spanking new Secretariat and a legislature complex including the assembly and council, Raj Bhavan and residential quarters for employees.

According to a senior official, the government would go for land acquisition in case it fails to get agreements done with all the farmers who “offered” their land for the capital city.

“As per international standards it requires about USD 2 billion for the capital region construction. It spreads over about 80 km. The activity may get delayed if the land agreement issues remain unresolved,” the official told PTI.

When contacted, Srikanth Nagulapalli, Commissioner Capital Region Development Authority, refused to put a figure on the construction cost saying they are still working on that.

According to him, the Singaporean firm’s job is to prepare master plan for the city and identify master developer also.

“As per the agreement with the Singapore firm, it will give us master plan free of cost. They are also expected to identify master developers for us. The state government is yet to take to decision on master developer issue,” he said.

Infrastructure Corporation of Andhra Pradesh and International Enterprise, Singapore, signed an MoU according to which both the parties will “cooperate in the master—planning, development and construction of the capital city of Andhra Pradesh as a modern, vibrant, sustainable and smart capital city with a strong economy, excellent social amenities and efficient transport and logistics networks.

The 7,325—sq km Capital Region Plan is the first of a three—stage master plan for the capital city.

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