It is known that the Siva Rama Krishnan committee is not in favour of having the state capital in the VGTM (Vijaywada – Guntur – Tenali – Mangalagiri) zone. The committee opined that there are very few government lands in the region and acquiring land from private parties will cost about 40000 Crores alone. The committee is of the opinion that it will not be wiser for the state to invest so much of money only for land since the state is already in financial crisis.
The committee estimated that the state capital will cost 1.2 Lakh Crores and it will not be possible with Center-State and Private partnership. The committee also asserted that it will not force the government to establish the state capital at any place and it is decided on the sole discretion of the state government but advised the government only to choose a place where abundant government lands are available.