Seemandhra Capital Race: The top five contenders

With India’s highest authority, the President, giving assent to the Andhra Pradesh Reorganisation Bill 2014, commonly known as the Telangana Bill, the six-decade long tumultuous saga of Telangana has finally come to an end. Though, Hyderabad is touted as the joint capital of both states for ten years, the Seemandhra region is faced with an intense pressure of creating a new capital city.

Though several leaders across the state are lobbying for this coveted honour, pinning on one still remains an uphill task. As bifurcation dust settles in Andhra Pradesh, Commonfloor analyses and presents the top five contenders of the capital race. These include Visakhapatnam, Vijayawada-Guntur belt, Ongole, Kurnool and Tirupati.

Vijayawada-Guntur belt

This belt is another strong contender as the stretch holds immense potential for development. While Vijaywada is famous for its automobile industry, Guntur rides a piggy back on its cotton, chillies and tobacco trade. Thus, if developed as the capital city, the belt can emerge as a manufacturing and trading hub of the region. The belt is easily accessible from NH-5 and NH-9. Vijaywada is centrally located in the new state. Hence, it has good connectivity to other cities and towns in the state.

In addition, what sets it apart from Visakhapatnam is the smooth railway connectivity. Through one of the largest railway stations in the country, Vijaywada enjoys excellent intra-city connectivity.

However, land acquisition would be a herculean task here. As per the Land Acquisition Bill, the land can only be acquired on the basis of the previaling market value. Thus. arranging finance in short span of time would be very difficult. Since the land has to be acquired through farmers, there are chances of farmer protests like those took place in Noida. Also, the property values have already touched sky.

Visakhapatnam

Visakhapatnam, the second largest city in Andhra, seems to lead the capital race. And why won’t it be? From a natural harbour to a seafront to a cosmopolitan panache, the port city has it all. Further, the city also boasts of state-of-art social and civic infrastructure. Be it renowned schools, colleges, hospitals or entertainment zones, everything is just a stone’s throw away.

As the city is yet to be exploited by the realty majors, it holds a great potential to wear the crown of the capital. Reiterating the same, while addressing the media fraternity, the Confederation of Real Estate Developers’ Associations of India (CREDAI) recently stated that Visakhapatnam has all the factors to become the capital. It was also validated by the fact that out of total residential plots sold annually, Vizag stood just next to Hyderabad.

Currently, one can enter the Vizag’s market with a budget as low as Rs 1-10 lakh. Plots sized 1200-2000 sq. ft. fall within the price brackets of Rs 300-600 sq. ft. Thus, a plot of 1200 sq. ft. is available at about Rs 3 lakh.

But as every coin has two sides, with all these positives, its location on the map raises eyebrows. Visakhapatnam’s distance from the Rayalseema can be a major stumbling block in its become the capital. Also, as far as the availabilty of land is concerned, there is not much to look at. The realty development has more or less reached saturation.

Denizens also believe that the city is already choked and cursed wiht traffic woes. Another factor that works against Visakhapatnam is the threat of naxalites. Being situated at the corner, naxalism could increase significantly, affecting the areas in and around it.

Ongole

Strategically situated on the national golden quadrangle route of NH-5, there are several speculations in the air to make Ongole the capital of Seemandhra. The impact of this is also felt on the property market of the city. Land that was up for grab at throwaway prices of Rs 10,000 per sq. yard a year ago is now available at Rs 30,000 per sq. yard, clearly depicting a rise of 200 per cent.

Several infrastructure projects in the pipeline also give an edge to Ongole. A month ago, government gave a green signal for setting up a Greenfield Airport at Ongole. In addition to this, the third National Investment Manufacturing Zone (NIMZ) of the State is also planned in Prakasam district of Ongole. With various incentives, Ongole is undoubtedly slated towards development. Thus, investing today can reap healthy returns in the times to come.

Though the airport is proposed, it will take a fairly long journey to start the first flight. Apart from this, lack of proper infrastructure is a major concern that needs to be addressed with utmost seriousness. And what about the severe water crises that the city faces every summer?

Kurnool

Gateway to Rayalaseema, the nomination of Kurnool for the capital city is also intensifying at a fast pace. In 1953, when Andhra Pradesh was newly carved out of Madras State, the area served as the capital for three years (1953-1956). So, will the history repeat itself again? Well, it is too early to have a definite answer. However, in terms of connectivity, Kurnool is well-placed. Located at the national highway 7, it enjoys swift connectivity to cities such as Bangalore and Hyderabad. As huge tracks of land are still untapped, Kurnool is definitely a potential option on the list.

As huge tracks of land are still untapped, Kurnool is definitely a potential option on the list. But again, Kurnool has its own share of problems. And lack of proper infrastructure tops the ladder. Also, time and again the flooding of the Krishna River has wreaked havoc in Kurnool.

Tirupati

Not too far in the league is Tirupati that is also in fray to become the capital city. This temple town has caught the fancies of the home buyers and investors mainly because of the sentiments associated with the place. Also, in terms of security, it is the safest bet. Property pundits opine that every city in the state can be the victim of the political turmoil, but Tirupati will always remain unaffected and secure.

Additionally, temple towns’ emerging as realty hotbeds is a nascent trend that is gaining momentum in Indian real estate sector. Thus, if backed by infrastructure upgrades, then sky is the limit for Tirupati.

However, it goes without saying that, in terms of infrastructure, the Seemandhra region will definitely get a shot in the arm. This is clearly indicated by the benefits announced for the region under Prime Minister Manmohan Singh’s six point package. With Andhra Pradesh becoming the 12th state to get special category status, infrastructure will soon get a facelift. Hence, in turn will boost the realty market of the entire region.

So, will Visakhapatnam, Vijayawada-Guntur belt or Ongole get the crown of the capital city? Or will the history repeat itself again? Or will Tirupati win the capital race? Can there be two capital cities? There are rumours that Seemandhra will have two capital cities- one for administrative purpose and the other would function as the Financial capital. While Kurnool is the strong contender for the former, Vijaywada-Guntur is in the race for the latter position. Proposal to make Visakhapatnam as the Industrial capital is also doing the rounds. If Tirupathi or Kurnool is selected as capital then it would benefit mainly Rayalseema region while Vizag or Vijaywada as capital would benefit mainly coastal Andhra. In this scenario chances of Ongole brightens as it is located centrally from all regions.

Well, these are certain unanswered questions that will be cleared within forty-five days once the new state is born (2nd June, 2014). Till then let’s wait and watch!

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Also Read: State Division boosting Seemandhra real estate market