AP capital in PPP mode

The state government said water and soil would be taken from all the villages in the state to Amaravati. Its mixture would be used in capital city construction. The idea is to promote an emotional bond with the capital city among the people

Hyderabad: The Centre would help in raising essential administrative buildings like legislature for Andhra Pradesh, while a Master Developer would pitch in for development of the capital city, a top state government official has said.

"It will largely be a PPP arrangement except those buildings which are going to be built with the help of the Union government like the Legislature...

The Union government is bound to provide these according to the (Andhra Pradesh) Reorganisation Act," Parakala Prabhakar, Advisor (Communications) to the state government, said.

The foundation stone for capital city Amaravati would be laid by Prime Minister Narendra Modi on 'Vijaya Dasami' day (October 22).

The state government is planning to organise the foundation-laying ceremony on a grand scale, without being extravagant, Chief Minister N Chandrababu Naidu said last week.

It has "pooled" more than 33,000 acres of land from farmers and other land owners in the region as per its "land pooling scheme" offering them benefits like share in developed land.

Asked about mobilisation of funds for the capital city development, Prabhakar said the Master Developer, to be chosen in the Swiss Challenge method, will have to bring in investments in a Public Private Partnership (PPP) mode.

"That is the job of Master Developer. Master Developer is not a builder. He is a developer. He will have to bring in investments in a Public Private Partnership.

That is the reason why Government of AP or its agencies will take a stake so that these things when they yield profits, they are going to be beneficiaries of those profits or returns," he said.

Chandrababu Naidu had already said the government would adopt a transparent procedure, like Swiss Challenge, for developing the capital city.

Besides raising administrative buildings, the state government would make efforts to establish hubs of activity in areas like health, education, knowledge, sports, legal and also entertainment in the capital region so that vibrant economic activity takes place.

Singapore and Japan, countries which are economic and technological powerhouses, have been requested to join the endeavour to develop Amaravati as a grand city and they have shown interest, Naidu had said.

Prabhakar said about one lakh invitations, including about 5,000 VIPs across the country, would be sent out for the foundation laying event.

The VIPs include Union Ministers, Chief Ministers of all states, Governors of all states, judges, MPs, eminent personalities and also top industrialists. Public representatives at the grass-root level in the state and about five lakh common people would attend the function, he said.

During the two-hour event, the Prime Minister would walk through an exhibition depicting the past, present and future of Amaravati. He would visit the temple town Tirupati after the two-hour-long foundation laying function, Prabakar said.