Capital city meant for economic activity, not just for govt offices: Andhra CM

He brushed aside the voices of opposition against forceable acquisition of farm lands in the proposed capital

Brushing aside the voices of opposition against forceable acquisition of farm lands in the proposed capital city area, Andhra Pradesh chief minister N Chandrababu Naidu on Thursday said his government’s focus on building a larger capital city was for the sake of economic development and employment generation rather than just housing a couple of government buildings.

“When 95 per cent of the farmers had willingly parted with their land for building the capital city under the voluntary land pooling system there was no reason why the rest should not fall in line,” Naidu said in defence of his government’s stated position that the land acquisition Act would be used against those who did not join the land pooling system.

His  remarks came hours after Telugu movie star and Jana Sena party founder Pavan Kalyan, who supported Naidu’s Telugu Desam Party (TDP) as well as Bharatiya Janata Party (BJP) in the Assembly and Lok Sabha elections, turned the tables on the state government by promising farmers he would fight on their behalf if the government tried to take away their land by force.

“Why should the government need such a large extent of land for building the capital city in the first place,” Pavan Kalyan had questioned on Thursday during his maiden visit to the villages falling under the capital city area. Pavan, who is the younger brother of actor and former Congress minister K Chiranjeevi, said he would even start an indefinite fast if the government used the land acquisition Act.

While YSR Congress party president YS Jagan Mohan Reddy had already declared he would return all the lands taken from farmers as soon as his party comes to power, Pavan Kalyan’s statements are expected to create more discomfort for the ruling party. “You cannot build the capital city on the tears of the farmers,” he said.

Naidu had last week said they were able to take around 32,000 acres of farm land under the land pooling system and together with the government land, over 50,000 acres would be at the disposal of the new capital city.

Developers to be roped in

Ending the suspense on how exactly the government was going to develop the capital city, Naidu today said the land would be given to developers after setting aside farmers’ share and the land meant for the common infrastructure. “Twenty-five per cent of the land will be given back to farmers in the form of developed plots and 50 per cent will be set aside for building common infrastructure, including roads and parks. The remaining 25 per cent will be given to developers,” Naidu said addressing a seminar meant for Japanese entrepreneurs here today.

Barring a few government buildings such as Assembly and Raj Bhavan, the government intends to develop the rest for office space and residential quarters for government employees through private developers in exchange for the land while looking at developing the common infrastructure with the central funds. Naidu cited resource constraints for choosing the public-private development mode.

According to sources, the government was considering a proposal to allot land parcels of 100-200 acres each to developers on a 70:30 basis wherein the latter would give 30 per cent of the built-up area to the government in exchange for the land and keep the rest for their own commercial real estate endeavours.

Naidu said his government was taking steps in such a way that all the developed plots that would be given to farmers would also enjoy a good premium. One such step was to develop industrial nodes around the capital city to create enough demand for businesses and real estate.

Offers business flexibility
Stating that his government was aiming to attract $30 billion in the next one decade, the chief minister said the state would propose 1,000 projects and circulate them among the investors to pick and choose. It has also proposed a dedicated integrated industrial township and industrial corridor for Japanese companies.

“We will give you flexible business models. You can choose a joint venture partner from among our local entrepreneurs. Or the government will take a small percentage of equity just for your comfort. You can set up an SEZ or an industrial park and bring companies. Or you are free to suggest your own mode for tapping business opportunities in Andhra Pradesh,” he said.

Akio Isomata, minister, Embassy of Japan in India, said Naidu offered a strong and business-minded leadership, which was a reassuring factor for the Japanese investors looking at AP for investment.

The seminar was held on ‘Expanding Technology Cooperation for Smart Community in Andhra Pradesh’. About 140 Japanese companies have been roped in to explore investment opportunities in AP and in the proposed capital city in Guntur district.