Vizag-Kakinada Coastal corridor revoked, thanks to Mr. Naidu

A proposed coastal corridor between the coastal cities of Vizag and Kakinada was revoked by the Andhra Pradesh government. This comes after the TDP leader Chandrababu Naidu strongly opposed it and staged a demonstration in Kakinada last month. The corridor is supposed to be industrial corridor between the cities and later to be extended to other coastal cities. There would be a road along the east coast connecting Kakinada and Vizag. This is also called as petro corridor with Reliance, ONGC and several others thinking of setting up their refineries in the SEZ’s that were proposed to come along the coast.

Mr. Naidu’s opposition to the corridor was based on damage the coastal corridor would cause. Not only would the coastal environment would be in danger but the corridor would displace a lot of fishermen and other communities around the coast. After the corridor was initially announced the real estate prices surged through the roof in Vizag. There were layouts coming up almost overnight. The unique selling proposition for that was the coastal corridor. There was also a lot of confusion about land acquisition for the proposed corridor. Land registrations were stopped around the area for various reasons. We just have to wait and see what happens to the land registrations now.

With elections around the corner, Chief Minister Rajasekhar Reddy did not want to take any chances. If there was a mass support against the corridor that would be a death knell to the ruling party. Congress government in Andhra does not have any anti-incumbency factor. TDP does not have a wave going along with it. Given these scenarios it is best for Mr. Reddy to hold the corridor until the next election.

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