Construction Opportunities in Andhra Pradesh Capital City

Construction Opportunities in Andhra Pradesh Capital City

2015-03-11 Posted By:Infra Bazaar

The State of Andhra Pradesh was bifurcated last year, with Telangana becoming the 29th state of the country, while Andhra Pradesh retained its old state status. Post bifurcation Andhra Pradesh was left with no capital, but allowed to use Hyderabad as a temporary capital for the next ten years. Andhra Pradesh needs to build a capital from scratch in the next ten years, which means there will be a lot of construction activity in the coming years.

Andhra Pradesh Capital City

The newly formed TDP (Telugu Desam Party) government has already announced the location of the new capital near Vijayawada city, on the banks of river Krishna. The core capital will be spread over a stretch of 122 sq. kilometers, while the capital region will be spread over 7068 sq. km covering cities of Vijayawada, Guntur, and many mandals in the districts of Krishna and Guntur.

The government has chosen a stretch of land, with no infrastructure or whatsoever, to build a world-class capital from scratch. Government has already pooled a big chunk of land in the capital area

The Highly Ambitious Capital Project

Government is keen on developing a truly world-class capital for Andhra Pradesh, which will be one of the best in the world. The government of Andhra Pradesh has already joined hands with Singapore in building the capital city. It is known that Singapore is preparing a capital master plan for Andhra Pradesh. Very recently, Japan too joined hands with the government of Andhra Pradesh to take an active part in the capital construction.

Existing Infrastructure in the Capital City

The core capital area which falls in the mandals of Thullur, Nelapdu, and Neerukonda is mostly comprised of agriculture land, with hardly any urban living or connectivity. Government particularly chose this place because of its geographical advantage (riverfront), and its proximity to the city of Vijayawada.  Also, it is easy to construct a capital as per the plan in a fairly empty place than building one in an existing city. As of now, the core capital area depends on Vijayawada for road, rail and air connectivity.

The Big Opportunity for the Construction and Infra related Companies

The huge tract of land in the core capital region of Andhra Pradesh is just agricultural land, and everything has to be built from the scratch. Be it roads, offices, administrative buildings, residential buildings, power lines, drainage system etc, all of them need to be developed, in not so big span of time.

Major Infrastructure Announcements in and around the Capital City

  • Core capital area and the Vijayawada city to be the administrative, business, trading, IT, ITeS hub
  • Pharmaceutical zone at Nandigama, Krishna district
  • Tourism hub at Amaravati, Guntur district
  • Heavy Industry hub at Sattenapalli, Guntur district
  • Logistics park near Gudivada, Krishna district
  • Fabrication hub near Nuziveed, Krishna district

Government also announced a Sentosa (Singapore) like tourist island in Bhavani Island, a small sized island located in Krishna river, near Vijayawada.

PPP Model – the Only Scope for Andhra Pradesh

The State of Andhra Pradesh is now finding it difficult to even pay salaries to its employees. With state falling in deep budget crisis post bifurcation, it is virtually impossible for the state to build an entirely new capital city on its own. The government already estimated that the capital city requires a whopping 1 lakh crore rupees to complete the first phase of the construction.

Government has to go with PPP model for most of the construction and other infrastructure projects in Andhra Pradesh capital city.