Historical town of Amaravathi, located 35 km north-west of Guntur is said to be the new capital town for Andhra Pradesh state, if we have to believe in latest insider reports as land-prices around proposed Mangalgiri region are alarmingly high. This ancient town is once home to powerful Satavahana dynasty and we could see numerous Buddhist relics and a famous stupa erected during Ashoka's time at Amaravathi making it a place of huge significance.
Initially Chandrababu is keen to develop a new capital city between Vijayawada and Guntur, but the fertile land prices in and around Mangalagiri area soar to almost 15 crores per acre, pushing government officials into a shock. At the same time government doesn't own many lands around that region to build a capital with meagre investment. A revenue department official quoted that land prices near Mangalgir have sky rocketed, so they have suggested Amarvati as the best place, and the decision is also accepted by AP CM.
AP government owns nearly 10,929 acres land in Amaravati, while it got 16000 acres in adjacent Achampet mandal (Guntur district) and 6000 acres in Tadikonda (Krishna district). Clubbing few mandals from Krishna and Guntur districts around Amaravati, a capital could be easily built. Even though, if private lands are to be acquisitioned their price per ace is around 8-15 lakhs only and that would be an ideal option for deficit-ridden AP government to bear.
Highly placed sources revealed, 'Work to build capital will start within a few days from Tadikonda mandal. A bridge will be built on river Krishna connecting Mangalagiri and Gollapudi to improve connectivity with Amaravathi. Already the bridge was sanctioned and work will start soon'.