To overcome the challenge of land acquisition for building Amaravati, the state went in for land pooling. Farmers who gave up their land were offered a 10-year annuity package. “We have made farmers shareholders in the development process in the new capital, without evicting them from their habitations,” says Naidu. The annuity amount will not only increase 10% every year, but farmers will also get back a part—nearly one-third—of the developed land, which they can sell in the next 10 years. Of the 34,000 acres of land pooled, the state will keep 6,000 acres. The rest will be returned to donors. “Farmers with the most fertile land will get back 1,000 sq. yd. for residential purposes and 450 sq. yd. for commercial purposes for every acre of land given,’’ says C. Kutumba Rao, vice chairman, AP State Planning Board. Similar packages were announced for other farmers with not so fertile lands, too. Within two-and-a-half years, land which was selling at ₹10 lakh an acre has begun to fetch ₹2 crore. “So if the farmer decides to sell the developed plot, he can make a lot of money,” says Rao.

Major manufacturers have shown interest in setting up shop in the state. Holitech Technology Company said in August 2018 that it will invest ₹1,400 crore to set up a component manufacturing facility for Xiaomi India in Tirupati. “Today 20% to 30% of all mobile phones are being manufactured in AP, I want it to go up to 50% to 60%,” says Naidu. Reliance Industries has announced an electronics park for making mobiles and televisions in Tirupati; electronics manufacturers Foxconn, and TCL Corporation, too, have plans to invest there.

The state is already building an ecosystem for the automobile industry by attracting investments from Kia Motors, Ashok Leyland, Euro Motors, Apollo Tyres, etc. To attract Kia Motors, the government decided to waive the state goods and services tax (SGST) for the company for 22 years. “By forgoing so much tax revenues, I am able to create an automobile ecosystem in Amaravati, which has not only brought in a host of ancillary industries but also created jobs for hundreds of people,’’ explains Rao.

Rao also believes that the long coastline of 972 km gives the state (which has the country’s largest offshore gas fields) an opportunity to go in for port-led development like a pharmaceutical ecosystem and a petrochemical complex. Early this year, the state signed a memorandum of understanding with Haldia Petrochemicals to build a refinery and petrochemical project in the Kakinada SEZ. The investment outlay is ₹60,000 crore. Rao says not only has the state waived the SGST, but it has also taken a 15% stake in the new venture.

The state government is looking at attracting top educational institutions in the country. In January, Naidu laid the foundation stone for XLRI-Xavier College of Management. The 50 acres of land in Inavolu in the AP Capital Region where the college is to be built was given at ₹10 lakh per acre. This will be the first XLRI college in south India. Similarly, land has been given to the SRM University and VIT University at low rates. “While these universities will create an ecosystem for academics and research, we can then charge higher rates from other universities, which want to set up base here,” says Rao.

Perhaps the most grand structure in the masterplan of Amaravati—designed by the renowned Norman Foster of Foster+Partners—is the new government complex at the heart of the city. The building, the wide circular roof of which tapers into the shape of a needle as it goes up, houses the legislative assembly and the high court besides several secretariat buildings. Further south from the banks of the Krishna river are 13 urban plazas, signifying the 13 districts in the state. Means of transport in the city will run on electricity. There will be water-taxis, dedicated tracks for cyclists and well-shaded pavements, encouraging people to walk. The green pockets in the city are modelled on New York’s Central Park and Lutyens’ Delhi. There is a 7.7 sq. km. off-site solar array (a combination of several solar panels) and rooftop panels on buildings to light up the city. When Naidu pitched this grand vision of ‘Tomorrowland’ it looked like a tall task to many. Naysayers said that he was going overboard, doing too much to create his legacy. But Naidu has never been one to be perturbed by criticism. It would have been ideal for Naidu if much of Amaravati, which means the city of immortals, had been completed well ahead of the assembly election in April.

It would have made a big difference at the hustings. But matters have not progressed smoothly in building ‘the people’s city’. The reason? Lack of funds. Rao says that a 3% of GDP borrowing limit set by the Fiscal Responsibility and Budget Management Act, 2003, is slowing down work. The government plans to raise ₹8,000 crore in the coming months. Design changes added to the delay. Only 16% of the total construction has been completed till now. Projects worth ₹50,000 crore are underway. Amaravati is expected to be built by 2025 and the AP Capital Region, which comprises parts of Guntur, Vijayawada, and Tenali, by 2028.

Despite the delays in the Amaravati project, Naidu hopes people still believe in his vision. As he pursues his vision of a smart state, he has taken care that the common man and the farmer are not overlooked. His oversight in reassuring them as he transformed Hyderabad was what caused his unexpected defeat in the assembly polls in 2004.

Now, besides the benefits of the land pooling scheme for farmers who gave up their land, Naidu has a host of welfare schemes for the needy. There is the NTR Bharosa Pension scheme which gives ₹2,000 per month for senior citizens and the infirm. Nearly 9.3 million women will get ₹10,000 in three instalments under the Pasupu Kumkuma scheme. Around 400,000 without jobs are beneficiaries of the Mukhyamantri Yuvanestham scheme under which they receive skill development and apprenticeship besides a monthly allowance. Under the NTR housing scheme, the government plans to build 3 million houses at the cost of ₹80,000 crore. The government has built 870,000 houses and hopes to complete the project by 2022 and make “Housing for All” a reality in the state.

Whether Naidu gets to complete the task he has undertaken remains to be seen.

This story was originally published in the April, 2019 issue of the magazine.

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