Tirupati Urban Development Authority is planning to set up an Economic City (Economic Zone) in the temple city of Tirupati. The proposed city will not only make provision for IT companies but also will promote multi-business activities. More than 500 acres of prime land at Settipalli panchayat of Tirupati urban mandal have already been identified for the purpose. The idea behind this proposal is to develop Tirupati as multi-business destination on similar lines as Vijayawada and Visakhapatnam.
The government has decided to procure land for the Economic City through the land pooling method. Since Settipalli panchayat is the only village where land in Tirupati is available for construction, TUDA has zeroed in on the village for this project. However, lot of agricultural land has been converted for construction purposes. Demand for land has also resulted in lot of land related disputes in recent months due to which the government has stopped temporarily land registration in the Panchayat. Land for the proposed project will be acquired only after going through the land records and after establishing correct title deeds. Modalities are also being worked out for the ways and means of acquiring land and compensating the farmers for the land.
After losing out Hyderabad which was not only capital city but also was considered as IT hub of India, to newly created state of Telangana, Andhra Pradesh government is planning to create new business districts to attract investments into the state. Tirupati is one of such districts chosen for the purpose where the government is planning to create international standard facilities to attract investment.