AP Capital conundrum: Uncertainty haunts economy

• People keeping money for future investment
• All business activities at their lowest ever
• Business suffered badly during Samaikyandhra agitation
• Not much sales in jewelry, garments
• No takers for real estate ventures too

Vijayawada: The uncertainty over the capital plan keeps the money intact as people want to keep it for future investment. The Andhra Pradesh market is witnessing the lowest transactions ever during the last three months. Though there was some speed in the real estate business with speculations on the capital location, it had come down now with no transactions as the government zeroed in on Thulluru for the capital.

However, those who ran along the speculations on capital and purchased lands in Agiripalli, Nuzvid and Gannavaram areas are in big trouble as the activity had come down to the zero transactions. Not a single plot is purchased in these areas now with the capital going to Thulluru and those who have invested heavily and purchased lands here anticipating capital are now in big trouble. Even the land owners who have signed agreements with the prospective buyers in the boom season are now a worried lot as the buyers are not coming forward to pay the balance and even asking for the return of the advance paid. Both the owner and the buyer are in big trouble in Nuzvid, Agiripalli, Adavine- kkalam and Gannavaram areas where at one point of time the capital location was speculated. Some of the elected representatives and even the police officials were making big money by settling these disputes.

“When there was speculative news that the capital would come around Agiripalli, there was a big rush of investments. The land prices which were around Rs 10 lakh lakh an acre here have shot up to Rs 1 crore. As the capital is finally located in Guntur side, the investors and the land owners are in big trouble now,” analysed CPI-M city secretary Ch Babu Rao. He said that the government had allowed the speculations to do rounds and it had benefited several people, while several others have landed in trouble. “The government right from the beginning is not clear on its plans. Even now, it is not clearly giving its plan where the capital would come and where the capital establishments would come keeping people to speculate,” he said.

“Had the government made its plan, including location of different offices and establishments, this confusion would not have been there. But, now with speculative investment, several people are facing problems. Some of them have spent a few crore of rupees escalating the price anticipating even better offer for future if the capital comes there. But, things have changed and the prices have come down making huge losses to those who have invested,” Babu Rao said.

By: D Gopi