Business in Amaravati

Nepal is moving towards decentralization phase as well. Soon Nepal will be having it's state name, and state capital. Like, Telengana got formed as new state, leaving Andhra Pradesh behind, Andhra Pradesh is on its way to develop it's new Capital. Here is short analysis of new proposed capital of Andhra Pradesh - Amaravati.

Historical Overview of Andhra Pradesh

 Andhra Pradesh is one of the 29 states of India whose recorded history begins in the Vedic Period. Andhra Pradesh is mentioned in Sanskrit epics such as Aitareya Brahmana (800 BCE). The Assaka Maha-Janapada (700–300 BCE) was an ancient Indian kingdom located between the rivers Godavari and Krishna in southeastern India. There are accounts of people in the region being descendants of Viswamitra throughout all versions of the Ramayana, the Mahabharata and the Puranas.

Major actions aiming to revoke the merger of Telangana and Andhra occurred in 1969, 1972, and 2009.  On 9 December 2009, the Government of India announced the process of formation of the Telangana State. Public protests in the Coastal Andhra and Rayalseema regions occurred immediately after the announcement and on 23 December 2009, the decision was indefinitely deferred. The Telangana movement for statehood has continued with associated suicides, strikes and protests

Amaravati- The New Capital

As per the Andhra Pradesh Reorganisation Act (2014), Hyderabad became the capital of the newly formed state Telangana, following the bifurcation of Andhra Pradesh. Amaravati is thus being built to serve as the capital of Andhra Pradesh now that Hyderabad will no longer be located in the state. However, Hyderabad would remain the joint capital of both states for a period of time not exceeding ten year.

Amaravati is the proposed riverfront capital city of the Indian state of Andhra Pradesh. It is located on the southern banks of the River Krishna in Guntur district. The new city will cover an area of 217.23 km square., within the Andhra Pradesh Capital Region. The foundation stone of the planned city was laid at Uddandarayunipalem village of Guntur district by Prime Minister Narendra Modi on 22 October 2015. The cities of Guntur and Vijayawada are the major suburbs The seed capital plan for the new capital Amaravati, unveiled by the Singapore agencies, projects the core capital region more as a hub of financial and business activities than a place to live in.

Design Layout of Amaravati

Different zones

The core capital is divided into different zones: the gateway to the city; the downtown, which will be the core of commercial and business activities; the government core comprising the entire administrative establishment at one place; and the waterfront, a stretch of the core capital with the Krishna running through it.

The downtown is at the heart of the core capital.It will be flanked by the government’s core on the one side and the waterfront and the entry point on the other.

Smart cities model

The plan is developed on the principles of lifestyle, investments, public facilities, infrastructure/connectivity, heritage/culture, jobs, nature and clean and green concept forming the basis of smart cities. The mega city will be linked to seven regional centres encircling the towns and cities in Vijayawada and Guntur districts, where the government plans to develop specialised industrial hubs.

The capital region has been designed to cater for an 11.5-million population, with a provision for 3.3 million jobs by 2035, while the core capital area, spread over 16.9 sq.km, will meet the requirements of four million people, creating close to 1.8 million jobs by 2050. There are provisions to house the entire government machinery, including the Secretariat, the legislature and the other facilities abutting the downtown.

Greenfield capital

The design suggests that the proposed greenfield capital will have an extensive internal road network, covering over 1,000 km.An equal importance has been given to walkways and pedestrian paths spanning 300 km.

With Amaravati, a key constituent in the Buddhist circuit, abutting the area, a 250-km religious tourism circuit has been incorporated into the core capital region. The planners appear to have considered the threat of flooding looming large over the capital region, bisected by the Krishna, going by a 30-km stretch of public waterfront and the greenbelts along side the river.

“The focus will be on developing the seed capital region first, and this will be followed by the development of the peripheral areas,” Chief Minister N. Chandrababu Naidu said at a press conference at Rajahmundry on Monday.

First phase by 2018

Mr. Naidu, CM of Andhra Pradesh accompanied by Singapore’s Second Minister for Trade and Industry S. Iswaran, addressed the media after Mr. Iswaran submitted the copy of the plan. He said the government was committed to completing the first phase of the work by the end of 2018, and it was opting for the Swiss Challenge method to identify the developers for the work.

Importance of Business to the firm and society

Importance to Business Firm

A business, also known as an enterprise, agency or a firm, is an entity involved in the provision of goods and/or services to consumers. Businesses are prevalent in capitalist economies, where most of them are privately owned and provide goods and services to customers in exchange for other goods, services, or money. Businesses may also be social not-for-profit enterprises or state-owned public enterprises targeted for specific social and economic objectives. A business owned by multiple individuals may be formed as an incorporated company or jointly organised as a partnership. Countries have different laws that may ascribe different rights to the various business entities.

Lower start-up costs

Depending on the type of business you start, costs may be lower than a franchise where there is no up-front purchasing fee or supply costs. There won't be any high value charged anywhere, because everything is new. It would be like purchasing apple in Adam's world. You can make your charge. From rental cost, to transportation cost, the fees would not be too high hereby.

Independence

You make all decisions and create all business systems. You don't have to be dependent upon anyone, as you can move on your own and as per your own necessity. No other big firms will be watching you, and you can make your stand from the grass root level itself.

Site selection

You choose where to locate your business and what marketing procedures to follow. You can purchase the land that suits you, that is appropriate and is in good location. As sea is not far away from this capital, access to nearest sea port can also be analyzed.

Less Competition

Very few from the world at this time would think of investing in this new capital. Even if they are about to invest, your specific area of interest would be of low priority for them. You can initiate the business from very grass root level hereby.

Importance to Society

Local Employment

One of the most personal advantages of businesses in the local economy is the boost in employment in the region. Employment levels influence a range of other standard-of-living metrics, such as disposable income, home foreclosure rates and new small business startups. Employing people in the local community can stimulate word-of-mouth advertising for a company as well, assuming the company treats its employees well enough to get positive mentions.

Local Tax Income

Businesses pay a significant portion of all taxes in the United States, including income tax, property tax and employment tax. Having more businesses in the local economy can boost tax income for local governments, bringing in more money to repair roads, develop schools and improve public services.

Access to Services

Along with the standard-of-living increases inherent in raising local employment, the presence of many business types can raise the standard-of-living further by providing a wider range of services and amenities in the local area. Adding a movie theater to a small town, for example, can add an entertainment option to local residents while bringing in money from outlying communities.

Political Advantages

Businesses with strong ties to a local community can lend a hand in community-focused political actions. Businesses can help to fund and organize campaigns for lobbying, letter-writing and other political activities to influence legislators on issues that affect the local community. A local business can help to convince a presidential candidate to hold a campaign speech in the town, for example, by making sizable campaign contributions.

 

Individual Benefit

Opportunity for Growth

An individual will gain opportunity for growth. A milk seller would get high demand of milk, and he can increase the price of it. The market will be expanded. He can get promoted if he is already into business.

Standard of Living

Standard of living would be increased with the rapid improvement within the city. Those who used to travel in bike would now own a car. The life standard would be drastically changed like big city standards.

Challenges of Business in Amaravati

High commitment

Starting your own business requires a higher commitment of time and energy. An individual has to be connected and has to stay aware about things happening and needs high level of determination.

High risk

Success depends totally on you and your business talents. There exists high chances of failure as well. So the amount of risk involved is very high.

Delayed profitability

 Where the market may not already be established, it may take longer to become profitable. One has to wait for pretty long time to gain the profit.

Limited financing

Financing for a new business is more difficult to obtain. There probably are few institution who would support the entire campaign.

Pollution

With the advancement, there increases chances of pollution in equal proportion. Hence, air contamination, water pollution will all be of some significance.

Conclusion

With every agendas from making Silk Route to dream of Singapore, Amaravati certainly has got some prospects within it. Development of new capital would be opportunity, but there involves equal amount of risk. Visonary leadership, professionals, business experts should put their effort in making this city a business hub. Support of Central Government would equally count. As the capital is in it's childish phase, it can be shaped as per the need and necessity. This would not only create some value, but would show equal potential for its further upliftment.

Where will the city be after next ten years would count as significantly important dream. It would be challenge for Andhra Pradesh to make its capital city more important to global world than Hyderabad.

 References:

http://www.thehindu.com/news/national/andhra-pradesh/amaravati-a-financial-and-business-hub/article7444905.ece
http://www.business-standard.com/article/pti-stories/ap-pursuing-with-centre-prospects-of-making-vizag-a-part-of-116031800534_1.html

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