It is almost certain that the new state of Andhra Pradesh is going to have its capital in the stretch between Guntur and vijayawada. The adjoining Mangalagiri and Tenali areas also will be included in the capital region of AP.
But extent of the capital is going to be much smaller than Hyderabad. The AP Government has proposed to build the capital city in about 15000 acres of land. This land may be used for the official buildings for related to administration, police, and other departments.
The capital may not host the industry as the land acquisition for the industries is going to become huge hurdle for the government. The capital around Guntur – Vijayawada will be politically much active.
The AP government may look for semi urban areas around Guntur – Vijayawada for the location and establishment of industries. If the current land prices are there for a long time, it would be difficult for the industries to set up the centers in most parts of Andhra Pradesh.