PPP model may drive new AP capital's development

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) Re-organisation act," Parakala Prabhakar, Advisor (Communications) to the state government, told PTI.
The foundation stone for AP's capital city Amaravati, coming up in the Vijayawada region, would be laid by Prime Minister Narendra Modi on 'Vijaya Dasami' day of October 22.

The state government is planning to organise the foundation stone 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 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.