The announcement of Capital city ‘around Vijayawada’ by AP Chief Minister Chandrababu Naidu has huge impact on the development of Prakasam district. Particularly, the real estate business in Ongole, Donakonda and surrounding areas hit by the statement.
There have been speculations on the Ongole for the capital city of new state of Andhra Pradesh. The guessing game started much before the division itself with announcements by various ministers in previous Congress government.
The real estate prices in and around Ongole have sky rocketed with the rumours on capital status. Even after the bifurcation, there have been news in the media that the large chunks of Government lands in and around Ongole and proximity to Rayalaseema will keep the Ongole as first choice for capital. But the political and business lobbying from Krishna and Guntur districts has outsmarted all the options and choices.
Apart from this, the statement by AP Chief Minister, Chandrababu Naidu also did not bring cheers to the district. There are no major projects announced in the statement for Ongole except Industrial zone at Donakonda, which may take decades to realise.