According to the January Knight Frank report on the real estate sector, Hyderabad is the only Indian city in the global top 20 in-home price appreciation in the third quarter of When Andhra Pradesh was bifurcated in , many thought that there would be flight of capital from Hyderabad to residual Andhra since a majority of big industrialists and businessmen hailed from coastal Andhra region. Six years down the line, the reverse is happening.
Several projects have been shelved in the process. The announcement followed a decision by the state cabinet cancelling allotment of land made to Lulu Group during the TDP regime for developing an international convention centre in the port city of Visakhapatnam. A Singapore consortium, comprising Ascendas-Singbridge and Sembcorp Development, exited the Amaravati capital city start-up area project after the government terminated a contract signed with it by the previous government.
The consortium, was set up in to develop a 6. Related news: SIT to probe into alleged land irregularities in Amaravati capital region. Despite being a businessman himself, having interests in infrastructure, power and media sectors, Jagan appears hostile to striking business deals and networking with potential investors.
Naidu was a regular participant at the World Economic Forum at Davos and created a buzz around the opportunities in the state. As a result of his efforts, Andhra Pradesh stood fourth in attracting Foreign Direct Investments in the first nine months of the fiscal year April — December , ahead of Tamil Nadu and Gujarat, according to the Department of Industrial Policy and Promotion data.
Jagan, however, is yet to show any appetite for attracting investments like his predecessor. The Economic Development Board, established by the Naidu government as a nodal point of contact for investments in the state, has been put in limbo since the new government came into power in May last year.
A majority of the investments were made in the IT corridor in Hyderabad. Hyderabad saw a burst in investments in , attracting three times as much private equity than the previous three-year period, says Satish Vadaga, Hyderabad city lead at Anarock Property Consultants. By patronising the construction and renovation of temples such as Yadadri and Vemulawada with an outlay of hundreds of crore, and participating in rituals, KCR makes it a point to convey that he is religious and devout.
If Telangana has an accumulated outstanding debt burden of Over Rs 1. Huge sums are being spent on the ongoing Mission Bhagiratha, which promises to provide potable water to all households, and many other such programmes. Buoyed by confidence from the victories in the local body and municipal elections, the TRS government is able to balance development and welfare to a large measure.
The other events that Naidu attended ended no better. Photo: India Today. The total investment promise made in the series of partnership summits run into several lakh crores, but what has translated into reality is nowhere near the boastful claims. In alone, the state had announced that it had signed memorandums of understanding MoU with companies with an expected investment of Rs In , the state had signed MoUs with an estimated investment of Rs 4.
In , the Andhra government had signed MoUs with companies with an expected investment of Rs 4. If all this were realised, Andhra would have been the richest state without a reason to look back and the MoUs in three years alone would have provided employment to 44 lakh people. Even if 20 per cent of these deals would have translated into reality, the state would have been buzzing with economic activity. Not that nothing has happened during the period between and The massive estimated outlay of Rs 4 lakh crore to Rs 5 lakh crore of government and private investment for the creation of a world-class state capital was always a tough ask on the state exchequer.
Photo: Reuters. From land allotments to private institutions for a song, to leasing of lands to state institutions at exorbitant rents, to purchase of land in the proposed capital region during the TDP rule, have all come under scrutiny. Under Jagan, reverse tendering, calling for tenders seeking reduction of cost, for contracts that were already awarded, has gained traction.
Jagan had repeatedly promised reverse tendering if he came to power. The MoUs signed with some large corporate with regard to land allotments have been scrapped by the state government. A case in point is the Lulu Group that was supposed to build convention centre and mall in Visakhapatnam.
The decision was taken on the ground that the companies have not started any work on the ground. Finance Minister Buggana Rajendranath Reddy tore apart these policies in the Assembly, impaling the mismatch between the tall claims by the TDP regime and the ground reality. He charged the Chandrababu Naidu administration with skulduggery.
Against this background, Jaganmohan Reddy has come up with an idea of creating three capitals for the state of Andhra Pradesh — Amaravati as legislative capital, Kurnool as judicial capital, and Visakhapatnam as an administrative capital. The state, which chose to have the decision passed through legislative, hit a stumbling block in the Legislative Council. Irked by this, the Jaganmohan Reddy government recommended the dissolution of the Legislative Council.
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