Investors not eager on Amaravati

Amaravati: Though the state government is determined to expedite the economic development of the capital city area, several private and government organisations for which the government allotted land in 2016 and 2017 have not yet started any activity or construction process.

The AP Capital Region Development Authority (APCRDA) signed MoUs with several business houses with committed investment of around Rs 1.50 lakh crore, but only four private institutions have started construction work.

The government is hoping that the organisations will start their work in the wake of decision by the government to begin construction activity of Amaravati Government Complex (AMC). But, industry experts and some officials who did not want to be quoted said that as the general elections are only a year away, the investor are not hasty to invest in Amaravati.

“We have no doubts to say that the recent clash between TDP and BJP governments must influence the investors. Besides, the delay in creation of trunk infrastructure and lack of economic activity in the capital city area are also causing to hesitation among the investors and some organisations, including banks,” they said.

According to sources, land was allotted to around 60 organisations in capital city area. The major institutes such as Indo UK Institute of Health (IUIH) and BRS Medicity Healthcare & Research Pvt. Ltd., have not started any activity so far though the government issued GOs in 2016. The IUIH was allotted 150 acre in two phases and it proposed investment of Rs 1,000 crore and employment to 10,000 people.

The The BRS Medicity was allotted 100 acre to build 1,500-bed hospital and allied projects with Rs 5,450 crore investment to provide employment to 6,700 people.  Both are yet to start construction. Besides, another 52 institutes for which land was allotted are yet to start construction works.

However, four institutes started construction activity in Amaravati. The Vellore Institute of Technology-AP University has been allotted 200 acre in two phases for the proposed investment of Rs 3,700 crore. The VIT has completed the construction of 3.11 lakh Sq.ft and another 6 lakh Sft of construction is in progress as against the total target of 1.99 crore sq ft built up area.

The SRM Amaravati University was allotted 200 acre in phases with a proposed investment of Rs 3,378 crore.  It has completed 7 lakh sq ft against the total built up area of 2.13 crore sq ft. Similarly, Amrita University was allotted 200 acre in two phases with a proposed investment of Rs 2,200 crore.

Though it was given physical possession in March 2017, it laid foundation stone on February 7, 2018 and foundation piling works are in progress and access road, power and water supply has been provided by APCRDA.

National Institute of Design was allotted 50 acre on lease basis and advance possession was given in 2016. The NID has started works recently. Several Central government institutes and banks have not made payments to APCRDA though the land was allotted to them. 

By K Varaprasada Rao