Following the state's bifurcation in 2014, Hyderabad has been serving as the shared capital of Andhra Pradesh and Telangana. The city of Hyderabad is famous for its rich cultural heritage. Blockchain is helping build Andhra Pradesh’s new capital – but can it cut through the red tape? Rao’s land documents, complete with a map, certificate, and carrying a unique QR code.

Last year, Tharigopula Sambasiva Rao entered into a deal with the state government of Andhra Pradesh. He gave up six acres of his agricultural land in his village, Sakhamuru, in exchange for 7,250 square yards—6,000 square yards of residential plots and 1,250 square yards of commercial ones. In February this year, the 50-year-old farmer got his plots registered at the sub-registrar’s office in Thullur town of Guntur district.

He booked an appointment through a government-run app and turned up with his Aadhaar number, a unique identity provided by the government of India to every citizen. Rao’s land documents, complete with a map, certificate, and carrying a unique QR code, were prepared by officials and sent directly to the registration office, all done in just a couple of hours. Kommineni Ramanjaneyulu, another farmer from around Thullur, exchanged 4.5 acres for 10 plots. The 83-year-old was wary of this new technology deployed to streamline the land registration process.

However, he was relieved to see the documents for his new assets in his native language, Telugu. There was no information gap. Rao and Ramanjaneyulu are among over 24,000 farmers from 22 villages in Guntur who have bartered their assets to the government. Because the newly formed southern Indian state is in the process of gathering 217 square kilometres—over 53,000 acres—of farmland to build Amaravati, its capital city. The entire documentation process for this massive exercise is based on blockchain.

The decentralised distributed ledger system—central to cryptocurrencies like bitcoin and ether—can create foolproof digitised land registries of the residential and commercial plots allotted to farmers. It essentially serves as a book-keeping tool that can be accessed by all but is owned by none. “we knew there would be full security, no double registrations, no duplicates.” “Now we don’t have the headache of hiring a document writer to prepare our papers. The records are generated and sent automatically to the registration office,” said Rao, clad in an orange-and-black lungi and a crisp white shirt. “With this new technology, we knew there would be full security, no double registrations, no duplicates.” In theory, blockchain can store land documents in a tamper-proof, secure network, reducing human interventions and adding more transparency. Data is solidified and the transaction history of a property is fully trackable.

This has the potential to reduce, if not entirely prevent, property fraud. But unlike in the case of bitcoin, the blockchain utilised by the government agency in charge of shaping Amaravati is private. So, despite the promise on paper, local landowners and farmers remain convinced that there’s no escaping red tape and corruption yet.

Why Amaravati, why blockchain? The new state of Andhra Pradesh was formed in 2013 following the bifurcation of a larger Telugu-speaking state, also called Andhra Pradesh. While the other new entity born from this division, Telangana, had IT hub Hyderabad as its capital, the new Andhra Pradesh had to be satisfied with just a few towns like Vijayawada, Guntur, and the harbour of Visakhapatnam. Thus, the quest for a new capital.

Mostly an expanse of tomato, banana, and okra fields today, with colourful two-storeyed houses sprinkled across small villages, the plan is to turn Amaravati into a state-of-the-art smart city, complete with a hyperloop route connecting it to Vijayawada, the nearest big town, 40 km away. Land in the region, low on industrial development, first began to be pooled in December 2014. The idea of such pooling is not new in India. Across the country, highways, government buildings, and industrial townships have risen on such collated property. Yet, ownership and acquisition remain incredibly acrimonious, frequently stalling even the most well-resourced projects, and often leading to. So, led by chief minister Nara Chandrababu Naidu, Andhra Pradesh decided to use blockchain to avoid the minefield—reams of badly maintained paper records, exposed to damage, decay, and tampering—that India’s byzantine land-record system can be. Even digital land records are vulnerable to manipulation by government authorities and fraudsters.

So much so that the distortion created by large-scale corruption and inefficiency in India’s land markets has shaved 1.3% off the country’s GDP every year,. “We want to give a very clear, risk-free kind of title to the farmers,” said Cherukuri Sreedhar, commissioner of the Andhra Pradesh Capital Region Development Authority (CRDA), the agency responsible for designing and building Amaravati. “One of these steps (blockchain) is to ensure the data that is with the CRDA is safe and can be traced back at any given point of time so security of title is always maintained.” The promise of blockchain Rao and Ramanjaneyulu, the two Guntur farmers, twirled their brows in confusion at the first mention of the term blockchain. But on seeing a sample blockchain certificate and plot map, their faces lit up. “Ah this, yes,” Rao exclaimed, his thick black spectacles dancing on the bridge of his nose.

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