Andhra Pradesh Government is in advanced stage of talks with National Buildings Construction Corporation for the development of capital city Vijaywada.

NBCC Chairman and Managing Director Anoop Kumar Mittal told BusinessLine that it would involve construction of the Assembly House, Government offices and Government housing colonies apart from real estate.

The Navratna company is currently working on a proposal to reconstruct the Andhra Bhawan in New Delhi. The plan comes in the wake of the bifurcation of the State and the land housing the Bhavan will be divided between Andhra Pradesh and Telangana.

Mittal said, “During the meeting to decide the redevelopment of Andhra Bhawan, Chief Minister N Chandrababu Naidu suggested the prospects of NBCC developing Vijaywada as well as the State.”

A roadmap is in the works as it is almost certain that NBCC will contribute in the development of Vijaywada, which is tipped to be the country’s first smart city, he added. The project is expected to rake in huge turnover for the public sector undertaking.

Land prices

Meanwhile, huge speculation is currently going on in the real estate market of Vijaywada. Sandip Patnaik, Managing Director (Hyderabad), JLL India, said, “Land prices have shot up by 200-300 per cent. The rates are costlier compared to Hyderabad which makes Vijaywada unviable for residential projects in the short term.” While speculators are going to rule the market with unfeasible rates, it will take one to one-and-a-half years for the price hike to come down, Patnaik said, adding that corporates will come in to buy office space only after 3-4 years.

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