Where Should The New Capital of AP be? And Why?

The news is out that Rajya Sabha too has passed the bill today clearing the decks for the formation of 29^th state of India.

After all the hue and cry about separation of Telangana from AP, the real colours of a few people(read political leaders) in Seemandhra are coming out in the open now. While the people were genuinely fighting to keep AP united, there are some(read political leaders) who bought real estate so that could make a fast buck if the state splits and land rates go up.

As per the latest informal reports, some land owners across Seemandhra are quoting exorbitant rates. This is more so in Vijayawada on the assumption that the new capital would be located somewhere in between Vijayawada-Guntur. The asking rate for an acre of land which was quoting Rs.1 cr earlier is now nine times that rate. Forget about whether there are buyers at that rate.  

Factors like non-availability of land, precious land in the hands of a few people, domination in politics and business by one or two sections of the society, had actually put Vijayawada in the back seat all these years. Smaller cities like Rajahmundry, Nellore, Kakinada, Guntur, had far better growth in terms of expansion than Vijayawada. The second biggest city in AP, Visakhapatnam has expanded in all directions in the last two decades.

Leaving aside the fact that Vijayawada has three canals passing through the city giving little scope for expansion by land; the city’s leaders have not been visionary. The moneyed, whether educated or not, are more interested in real estate, finance, hospitals, clubs for entertainment, automotive businesses and trading. With the result, job generating and life style changing segments like industrial production units, software and other next generation industries have not come into being. While lack of proper leadership and vision is one reason, scarcity of cheaper land is another for Vijayawada almost becoming stagnant.

For some, the retail boom that happened on either side of MG Road and arrival of a few big retail chains is a sign of development but that is not enough unless it is supported by proper industrial growth that brings in new people to the city. It took several years for the airport to become operational though night landing is still not a possibility. The city’s main arterial roads are still in shambles and remind one of being in smaller town. There was a huge scope to develop the banks of the canals and also along the stretch of Krishna River in the city which was never seriously looked into.

Now, if the capital has to be in Vijayawada, land should be available in plenty not only for government but also for providing affordable housing to all which looks impossible given the scarcity and high rates of the available land.

Location of capital between Vijayawada and Guntur may be a good idea but the chances of a few people from these cities holding huge tracts of land getting unduly richer by selling them to government and dictating terms in the new state are high.

Hence the Centre should look at cities/towns where poramboke land is available in plenty for establishing the capital. The Centre must ensure that the tax payers’ money is not wasted on acquiring land at exorbitant prices from the rich who bought lands recently in anticipation of state split.  

That will be real lesson for all those who wanted to become richer by the night by investing in land while at the same time fighting for united AP. Hike in land rates should be a result of real growth and not because a few people holding the same and dictating the rates. The later scenario may help the individual but not the city.

A city can grow only if it comes out of the grip of individual fiefdoms and that is possible only with selfless and visionary leadership.