Investors chary of uncertainty over AP capital

Visakhapatnam: Investors' confidence, which was badly hit due to the long spell of pandemic, is expected to pick up once there is firmness on establishing three capitals for Andhra Pradesh.

With Chief Minister YS Jaganmohan Reddy's decision on Monday to repeal the Bill on formation of three capitals and the announcement to table another comprehensive Bill after consulting all the stakeholders has evoked a mixed reaction among the investors with majority of them preferring to not comment on the issue. The Bill was repealed at a time when it was placed for hearing in the AP High Court after a section of farmers and political organisations challenged it.

A few who told Bizz Buzz when their opinion was sought, said strong political will was required to initiate the confidence-building exercise. They point out that they were affected first due to bifurcation agitation, later transition after granting Statehood to Telangana, the decision to develop Amaravati as capital city and later dropping of the decision with the change of government to form three capitals.

"The latest development will certainly create confusion, but we welcome the decision to table another Bill by taking all the stakeholders into confidence. Many investors who keep their plans on hold will certainly put their money on various projects once Visakhapatnam is made the executive capital," CII AP Chairman Datla Tirupathi Raju said. He said they are expecting a full stop to uncertainty at the earliest as valuable time has been lost with regard to capital issues. "No investor would like to make an investment when the situation is volatile," he pointed out. G Sambasiva Rao, managing director of Sravan Shipping Services, said the industry always wants development, for which a strong will power is required.

The MSME sector is pinning high hopes on major investments in the region. "We are in need of anchor projects to propel growth and improve order books for the pandemic-hit small and medium enterprises," AK Balaji, president of Visakha Autonagar Small-Scale Industrialists' Welfare Association, said.

A CEO of an IT company said, seeking anonymity that the announcement to develop Visakhapatnam as the executive capital led to increase in prices of real estate. He said to maintain the interest among the entrepreneurs, focus should be laid on luring investors from both domestic and overseas by adding the infrastructure and connectivity issues.