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Mad Rush Over Capital Rumours

Wild speculation about the location of the capital city of Andhra Pradesh has left the real estate sector in the lurch. Sharp increase in land prices has made housing a distant dream for the common man while the state government's silence has only added to their woes.

Even realtors are panic-stricken by the murky game unleashed by a few influential people in the new state. They have been dropping hints about location of the capital city, wherever they are visiting across the state.

While the government is silent on the issue, some politicians are busy spreading rumours that the capital will be located in Krishna, Guntur, and West Godavari and Prakasam districts.

Conse quently, land prices have skyrocketed in most places with a two bed room flat in Vijayawada, for instance commanding a price of Rs 65 lakh as against Rs 25 lakh a few months ago.

Industrialists too find fault with the `unnecessary media leaks' being dropped by key people in the government. Realtors first went after every piece of vacant land available between Vijayawada and Guntur and purchased large land parcels with the hope that the new capital will come up there.

In fact, chief minister N Chandrababu Naidu himself triggered the speculation by making Vijayawada-Guntur stretch as his preference for capital. Realtors from across the country landed in the region, with many returning from Vijayawada only after prices touched Rs 15 crore per acre as they realised that it was unwise to put lots of money on realty projects between the two cities.

Subsequently, officials dropped `leaks' that Amaravati region will fit the bill. Realtors then rushed to Amaravati, Krosure, Atchampet, Sattenpalle, and Pedakurapadu mandals to purchase land.

“There were no takers for lands in Atchampet even for Rs 5 lakh an acre.

The price increased now and the going price is Rs 8 crore per acre,“ said Sambasiva Rao, a local farmer.

After two weeks of mad rush, realtors changed their focus after it became clear that Amaravati is not in the race. The latest hint being dropped by officials and politicians is that the capital will be located somewhere on the periphery of the proposed ring road covering road covering VGTM-UDA jurisdiction.

“Absolutely there is no need to acquire 20000 or 30000 acres for con struction of capital. Almost all the government instal lations in Hyderabad are located in an area of just 200 acres.

About 500 acres of land is more than enough for constructing a world class capital,“ said former MP Yalamanchili Sivaji.

He rued that the government is losing huge income due to speculation by ministers as realtors and land owners are doing initial business through mere agreements without going for registration.

Besides losing revenue, such agreements will result in more legal complications in case government wanted to acquire land, he explained.

“Rumour selling by government has pushed investors to the backseat. Many of them are contemplating to take a call on new units only after official notification on the capital is published in the state gazette,“ said K Ramaiah Chowdary, an industrialist of Tenali.

Source: TimesOfIndia

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