What is the cost of construction of a building, even if it is the most luxurious one? In an advanced city like Hyderabad, it does not exceed Rs 4,000 per sq ft, including interior and sanitary work.
Even this is calculated taking into consideration the location of the building and transportation costs.
However, the Chandrababu Naidu government in Andhra Pradesh is planning to construct the Secretariat building at Mangalagiri as part of the new capital of Amaravati, at a very high cost.
The total built-up space for the building is six lakh square feet and the total cost has been estimated at Rs 300 crore.
A government order to this effect was released on December 29. Of the total cost of the building, the government has released Rs 150 crore and the remaining, it is borrowing from HUDCO at an interest rate of 10.65 per cent, which will be repaid over a period 15-20 years. One can imagine the interest burden on the government.
Now, the question is whether the cost of construction at Mangalagiri is so high as Rs 5,000 per sft, since the government is spending Rs 300 crore for six lakh sft building.
Experts say it would not cost even Rs 3,000 per sft, since the cost of construction material at Mangalagiri is cheaper when compared to Hyderabad. So, definitely, there must be a lot of scope for swindling big money by the contractors.
Secondly, the project cost is said to be only for civil construction. It will shoot up, if one takes into consideration the elevation and interior costs, leave alone furniture, ACs, lighting etc.
The building is supposed to be completed within six months, i.e. by June, but going by the pace of works, it is going to get delayed and there will be cost-overrun. This is the hi-tech rule of Chandrababu Naidu!
