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APCRDA to offer incentives to early Amaravati investors.

Posted by on July 21, 2018
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amaravati incentives early investors
Amaravati: The AP Capital Region Development Authority (APCRDA) is in the process of coming up with the special land lease, sale, joint venture, incentives and other joint development strategies to encourage private players to participate in the development of infrastructure in Amaravati.

While the CRDA has been following a uniform pricing pattern for allotting land so far, the new Public-Private Partnership (PPP) policy, to be unveiled shortly, is expected to give incentives to early investors. According to a presentation made by the APCRDA to Chief Minister N Chandrababu Naidu during the weekly review meeting on Wednesday, the authority has drafted special terms for early investors. As per the draft document, CRDA has proposed giving a rebate on land prices based on the number of jobs to be created due to the project that will be developed by the private player.

“There will also be concessional pricing on the case-to-case basis for a limited period of time as against the fixed reserve price as available in the land allotment policy,” the presentation said. The authority has also proposed interest-linked payment methods to reduce the financial burden of the developers.

Sources in CRDA told that a steering committee would be formed to decide on the terms of reference for the selection of private partners under the new policy. “A multi-disciplinary committee will be formed to finalise the development mode, selection methods, and contractual and bidding terms,” an official said.

The policy is being prepared after seeking inputs from various national and international infrastructure developers, including DLF, RMZ Corp, Mahindra Lifespaces, L&T Realty, GVK, My Home Group, Prestige Group. Some of the key inputs the private players gave to the authority were – reducing upfront financial burden towards the cost of land by promoting joint ventures and joint development models, and offering incentives such as investment subsidies and grants.

Speaking on the occasion, Chandrababu Naidu said, “The PPP policy should be extended to infrastructure creation, such as affordable housing, commercial projects including retail developments and malls, business and IT Parks, tourism projects, industrial infrastructure projects, and other economic and social infrastructure.”

The CM instructed the officials to ensure that the policy promotes the development of the mixed economy in Amaravati. During the meeting, the officials also discussed ways and means to pool necessary funds to ensure that the Rs 26,000 crore-worth development works underway in the capital are not hampered.

Other projects and decisions

  • Mahindra Group came forward to establish an industrial park in Amaravati
  • CM instructed officials to allot 3 acres to DAV Public School and Bharatiya Vidya Bhavan as they agreed to run schools if buildings were provided
  • Chinmaya Mission agreed to set up a school in the capital
  • 3 bridges be built near permanent secretariat to provide connectivity to the nearby water bodies
  • To arrange a few buses for the engineering experts to see the capital’s progress
  • CM directed officials to trans-locate trees which would otherwise be felled for shifting of utilities

GoM decided to allot 56 acres of land in the capital region to 13 institutions. The State government was giving land to various institutions to kick-start the economic activity in the capital. “If one institution starts operations, economic activity would gradually increase. This is the reason why we are allotting land to various institutions of national and international repute” an official said.

Who got how much land
10 acres: Vikas Kendra (Art of Living)
10 acres: Isha Foundation
10 acres: Dr Babu Jagjivan Ram Memorial
5.43 acres: Dr NRS Government Ayurvedic College
5 acres: Ramakrishna Mission
4 acres: Indian Army
3 acres: Chandra Rajeswara Rao Foundation
2.3 acres: Amaravati Venture Habitat Centre
80 cents: National Centre for Disease Control
70 cents: Society for Andhra Pradesh Network (MANA TV)
60 cents : RailTel Corporation of India