The new capital Amaravati has been divided into various zones, and there is a possibility that many educational institutions, IT and ITeS firms may set up shop there.
The hospitality industry in Hyderabad is getting the blues as it feels that the shifting of Andhra government's administrative activity to its new capital Amaravati may lead to a fall in tourist arrivals in the city.
But, with momentum picking up as the countdown begins, the infrastructure sector is upbeat as it looks to gain from a likely boom in construction activity in the bifurcated state.
Prime Minister Narendra Modi is slated to lay the foundation stone for Amaravati on Friday.
The state government is already on the job, which has started shifting its entire machinery from Hyderabad, which was named the common capital for both AP and Telangana for not more than 10 years from June 2014.
Telangana State Hotels Association General Secretary B Jagadeesh Rao voiced his concern when he said ever since Andhra Pradesh got bifurcated, the hospitality industry started witnessing a downtrend. With the shifting of AP's capital, the situation may further deteriorate, he added.
"The current occupancy rate hovers around 50-60 per cent. It may further go down with the shifting of government activity to Andhra Pradesh. Though the Telangana government is trying to boost tourism, certain issues are beyond anybody's control," Rao told PTI.
He, however, felt that the impact will be minimum in Madhapur and Gachibowli which are home to IT and service industry.
A hotelier in Lakdi-ka-pul, whose business largely depends on visitors coming to the city for various government-related works and the Assembly session, said the business may go down drastically if the Assembly and AP Secretariat are shifted to the new capital.
Recently, AP Assembly Speaker reportedly asked his officials to examine the feasibility of conducting the Winter Session in Amaravati in a temporary building.
The Federation of Andhra Pradesh and Telangana Chambers of Commerce and Industry president Anil Reddy said industries located in AP would mainly benefit following the shift.
"Why should an industrialist who has industry in Srikakulam or Nellore come to Hyderabad for his government work when the administration is shifted there? He need not travel all the way to Hyderabad to get his work done. In a way, it would cut short the delays," Reddy said.
According to CII (Andhra Pradesh) Chairman Suresh Chitturi, the new capital proposal will present huge opportunities in terms of infrastructure creation to the industry.
"People seem to be happy with regard to shifting of government activities to coastal cities. As the Chief Minister (Chandrababu Naidu) himself is staying there, the accessibility has increased," Chitturi said.
The new capital Amaravati has been divided into various zones, and there is a possibility that many educational institutions, IT and ITeS firms may set up shop there, he said.
Though the master plan has been done by a Singapore firm, local infrastructure firms will have equal opportunities in terms of getting business, he said.
