Govt Launches Amaravati’s First Housing Project
On October 31, Chief Minister Chandrababu Naidu released the brochure and logo of Amaravati Happy Nest, the first government-sponsored housing project in Amaravati. Located in Nelapadu, the project spans 14.46 acres and will have as many as 1,200 flats for sale. Up for grabs are 2BHK and 3BHK flats spread across 18 towers, each 12-floor high. The units at the project are priced at Rs 3,492 per sq ft. A web-portal has been created to invite applications which will be open from November 9.
Infrastructure so far
In terms of road infrastructure, the officials of the CRDA have informed the Chief Minister that the Seed Access Road, a 21-km stretch road network that will connect Amaravati to Vijaywada is nearing completion. This roadway is also the main entry point into Amaravati as well as 20 other priority roads. The last seven-km stretch remains to be completed, the delay was owing to land acquisition issues. Previously terrain issues and other technical issues were also cited.
As of now, infra works such as water supply, sewerage, roadways costing about Rs 14,360 crore is underway and so is the construction of the tallest Secretariat, the High Court and the Head of Departments Complex.
About two decades ago, when Andhra Pradesh Chief Minister Chandrababu Naidu thought of shaping Hyderabad along the lines of an information technology (IT) major, many considered it to be a utopia. The critics had to lose face, as we all know it. The state's new capital, Amaravati, is likely to be a similar success story. Infrastructure majors such as Larsen and Toubro and Shapoorji Pallonji and Co Ltd have started undertaking work at Velagapudi to turn Amaravati into a world-class city amid criticisms from the National Green Tribunal.
The CRDA had also planned to create ring-fenced entities (RFEs) for the execution of "remunerative projects" like water and power supply, transport and a host of others in Amaravati.
For example, Amaravati Development Fund (proposed), is one of the RFEs will be responsible for raising the required finances for the (capital) city development. Similarly, Amaravati Building Construction Company Limited will be responsible for construction and maintenance of government campus, including Secretariat, Legislature, High Court. Amaravati Utilities Company Limited to build and maintain water supply, wastewater, storm water, power and gas systems, Amaravati Blue-Green Infrastructure Company Limited to build and maintain flood mitigation infrastructure and also city canals, Amaravati Growth Corridor Company Limited to build and maintain ring roads and growth corridors in the capital region and the like.
Why Amaravati stands to gain
Amaravati has some inherent benefits when looked at from an investment perspective. One, its historical importance which maps to the Satavahana kingdom. Second, the region boasts ample water supply. Also, its location in between Vijayawada and Guntur makes it viable as an investment ground. Till recently, Amaravati was touted only as a tourism hotspot. Now, Vijayawada's popularity as an entrepreneurial hub and because of its connectivity could do Amaravati some good. Even Guntur with its various educational institutes, business centres and commercial zones could help scatter housing demand in Amaravati as the two areas are about an hour apart.
Last year, work on building residential quarters for government officials was already underway. Construction of a little over 9,000 flats had already been sanctioned and approved. Developed by the Amravati Development Corporation, these will be up for purchase and would be allotted to officials as per their ranks in the administration.
For a city that is almost six times bigger than Chennai, Amravati has the benefit of being a planned city in the league of Gandhinagar, Chandigarh, Bhubaneshwar and Naya Raipur. Jurong International Holdings Pte Ltd and Surbana International Consultants Pte. Ltd of Singapore had already drew three masterplans for the city. The larger city is expected to be home to 13.5 million people by 2050 as per the masterplan.
Chinese and Japanese firms, too, turned to Amravati to help build a sustainable city. Besides, Tokyo based Maki and Associates would serve as the master architect.
At the same time, there would be a need for equally strong social and physical infrastructure. Private players, too, would contribute to give shape to Amaravati. Meanwhile, proposals are afloat for developing urban solutions, core capital areas, sewer networks, water supply etc.
On the whole, if notable private players join hands in building Amaravati, there are chances that big key corporates are roped in to invest in the city.
Where should you invest?
With speculation around which city will become the capital, prices did soar. As of now, the state administrative machinery, as well as government officials, are moving the base. It makes sense to invest closer to Amaravati as further development is only going to add up to the costs. However, beware of artificial price rise in the name of future development. Also, bank on clear title land when going in for plotted development.