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Seemandhra realtors, ryots for early birfurcation of AP జనవరి 2, 2011

Posted by M Bharath Bhushan in Andhrapreneurship, Identity, Mulki, politics, regionalism, Telangana, Uttara Andhra.

Seemandhra realtors, ryots for early bifurcation of AP
Jinka Nagaraju, TNN, Jan 2, 2011

HYDERABAD: It is a classic case of business interests scoring over regional sentiments. In a development that may surprise many, realtors and farmers in the Andhra –Rayalaseema regions want the state to be divided as early as possible while their counterparts in the Telangana region want the carving of a separate state to be as delayed as possible.

Take the case of U Simhadri, a middle-level contractor for a power plant. Simhadri’s village near Kanigiri in Prakasam district has witnessed unimaginable boom in land prices. Ideologically, Simhadri is opposed to any division of the state. But since the demand for Telangana began to be voiced, land rates in his area skyrocketed.

“Exactly one and half years ago, the rate per acre was just Rs 3 lakh in our village. Now, it has gone up to Rs 35 to 40 lakh per acre because of reverse flow of investment. If Telangana does not happen soon, the prices are likely to fall. I stand to gain immensely if the state is divided,” the new generation contractor, who has 10 acres of land in Kanigiri, told STOI.

Simhadri claimed that the talk of Telangana triggered huge influx of investors and investments on land from people settled in Hyderabad. “People who foresee better economic boom in the new Andhra state are buying huge chunks of land in this part. Many investors who are skeptical of returns in Hyderabad increased their fund flow in the region,” he said. Simhadri has about 10 acres of land in Kanigiri.

Apparently, this is the trend from Ichapuran in Srikakulam to Tada in Nellore district. “Throughout the national highway stretch, even at a distance of 20 to 25 km interior, the land rates have gone from Rs 2 lakh an acre to Rs 30 lakh. At some places, it even touched Rs one crore,” Simhadri said.

So much has been the demand for land in these regions recently that in places like Chinna Mambattu near Tada in Nellore district, people are ready to pay Rs 30 lakh an acre but there is no land available. “The trend is evident even in remote villages where Hyderabadi-Andhras have started investing on land on the hunch that Telangana will happen anytime now,” he said.

In quite contrast, P Ravi Kumar of Venus Infra of Hyderabad is worried because the announcement of Telangana would upset his ventures which are looking up after two and half years due to global recession. A middle-level builder whose half-a-dozen ventures are progressing at a snail’s pace, Ravi Kumar says he will recover his investments only if Telangana is not carved out.

“I am for Telangana. But business-wise, at this juncture, any political upheaval in the state in any form will hurt my business irreparably. While big ventures can recover slowly even after Telangana is created, middle-level ones like mine will collapse for good,” he said.

According to Ravi Kumar, the fund flow into the Hyderabad realty sector has virtually come to an end. “There is a ray of hope only if status quo is there,” he said. But both Simhadri and Ravi Kumar are eagerly awaiting for January 6, when the Srikrishna committee report will be made public. Because they know that the report holds the key to which way their business would turn in the days to come.

source: http://timesofindia.indiatimes.com/city/hyderabad/Seemandhra-realtors-ryotsfor-early-bifurcation-of-AP/articleshow/7202669.cms


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