If the buzz in media is to be believed. Donakonda, a small town near Ongole may be the capital of residual Andhra Pradesh. Donakonda is approximately 70 Kilometers from Ongole via Cheemakurthi and Podili. The area has about 54000 acres of government land which went in favour of the remote town. With the land acquisition act in place, Government had to buy lands at market price. Building a new capital will require lot of lands for building government offices etc. So, government seemed to have preferred Donakonda.
Also there is an airport which was used for military operations several years ago. Even though it is not in usage now a days, the availability of air signals will be an advantage. However, there are certain apprehensions too. Donakonda comes under forest area and also there is a water problem. Flouride content is more in the available waters.