The relatively new born
state of Andhra Pradesh had the foundation laid for its new capital city of Amaravati
on 22nd of this month. The proposed capital region is spread about
an area of 7,420 sq. km and the capital city of 217 sq.km. It is the brain
child of its Chief Minister N. Chandra Babu Naidu, as he faces one of his
biggest challenge to construct the city. The master plan for the city was developed
by urban planning consultants Surbana International Consultants Pte. Ltd based
out of Singapore. They proposed an ambitious Seed Capital Area (SCA) Master Plan
for the capital city. Some of the key highlights of the plan are as under-
1)
The SCA will house close to 3 lakh
residents. Being a vibrant business hub, close to 7 lakh jobs are expected to
be created
2)
The plan also proposes to construct an integrated
network of Metro railway (12 km), Bus Rapid Transit (15 km), downtown roads (7
km), arterial and sub-arterial roads (about 26 km) and collector roads (about
53 km).
3)
The plan is to construct a city with
world class aesthetic appeal but adhering to the sustainable green principles
with extensive open green spaces
4)
Special emphasis has been laid on the
‘pedestrianisation’- with development of 25 kms of walkways linked to open
green spaces to promote a ‘walk to work environment’
5)
A dedicated freight corridor and
establishment of 7 industrial zones have also been proposed. A total of 938 kms
of roads have been proposed
While every resident of
the state including me will be excited to see a ‘‘Singapore’’ level at Amravati
and so does its Chief Minister, he and his team have their task cut out. In
this blog I want to discuss about the challenge the state faces in raising
capital.
Funding-
Any
project in this capacity requires a large amount of capital especially since a
new city is to be constructed. One option for the CM and his team is to go in
for a PPP model. But again PPP projects on such a large scale have not been
constructed in India. Moreover the roadblocks faced by the present HMRL project
(PPP) in the neighboring state has not gone down too well for the private
sector. Also given that the project is slated for completion in the year 2050,
its too long a call for any private company.
The Centre has promised
a sum of Rs. 60,000 crores as per the recommendations of the 14th
Finance Commission. In addition to paying the farmers for the compensation of
their land, a huge deficit still exists. So how does the CM look to raise money
for his ‘dream’ Project in addition to the state allocated budget and
institutional borrowing? Some of the options he could avail are-
·
He can look into the option of Corporation
investment from big companies along the industrial corridor in and around Amaravati
(Vijayawada and Guntur). Companies can be encouraged to develop infrastructure
in select pockets near their establishments by providing incentives such as
free land, water and electricity.
·
Already a lot of investment is coming
from Telugu Association of North America (TANA), the largest association of Telugu
people living outside India. They are raising funds through campaigns like ‘My
Brick-My Amaravati’ wherein donations are being accepted for buying bricks (at
Rs 10 a brick)
·
The Chief Minister has already embarked
on a journey to bring in investment from IT companies, like he did when he was
the Chief Minister of the then Andhra Pradesh.
So a lot depends on the Chief Minster himself and he needs to sail through the next election to come to power for another term in order to see his dream city take shape
References
a) http://www.livemint.com/Politics/pJXIgjMM8849rTBxJDjiyL/Is-Amaravati-Chandrababu-Naidus-biggest-challenge-yet.html
b)
http://indianexpress.com/article/explained/andhra-pradeshs-new-capital-amaravati-in-chandrababu-naidus-capital-idea-desire-to-impress-connect/
c) http://indiatoday.intoday.in/story/chandrababu-naidu-amaravati-capital-challenge/1/455244.html