The Andhra Pradesh state government is in a piquant situation to hand over the plots to the land owners of Amaravati. The previous TDP government, when the lands were taken in pooling from the farmers, had promised commercial and residential plots to the farmers. Accordingly, it has to hand over the developed plots to the farmers now.
The state government had spent Rs 34 crore for jungle clearance in Amaravati. Bushes were grown in the last five years of the YSR Congress regime as the government did not invest anything in Amaravati. The previous YSR Congress government had proposed three capitals and Amaravati was one of the three. Hence it did not invest any money on Amaravati in the last five years.
The jungle clearance work is nearing completion now. The government has to develop both the residential and commercial plots and hand them over to the land owners. The development of the plots would cost Rs 12,000 crore to the exchequer.
The development of the plots would include laying of main roads, internal roads, provision of drinking water, electricity supply, drainage system and street lights. All this would cost Rs 12,000 crore to the state government. The recent floods have totally inundated the lands and it would require raising the level of the lands. This would certainly cost heavily to the state government.
The land levels in Amaravati are to be raised to ensure that the flood water does not inundate the area. Unless this is done, the farmers may not take their plots. If they accept the plots now, the raising the plots level would be on their side.
The state government is now working hard to mobilise Rs 12,000 crore in addition to the cost required for raising the level of the plots. The total amount required now for the government to develop the plots is likely to be around Rs 20,000 crore. The state government plans to go for World Bank loan, sources said.